Amelia Corporation has the following information in its financial statement:

Preferred Stock 6%, $100 par, cumulative, 10,000 shares authorized $ 540,000

Common Stock, $2 par, 400,000 shares authorized, 320,000 issued 640,000

Paid-in-Capital Preferred 760,000

Paid-in Capital Common 2,560,000

Retained earnings 2,373,400

1. If Amelia paid a total of $75,000 in dividends, how much would each common stockholder receive for each share of stock owned? (Assume there are no dividends in arrears.)

A) $0.23 per share

B) $0.13 per share

C) $0.18 per share

D) $0.08 per share

2. How many shares of preferred stock are outstanding?

A) 32,400 shares

B) 5,400 shares

C) 10,000 shares

D) The number of shares cannot be determined without more information.

3. If Amelia did not pay a dividend for the last two years, but declared a $250,000 dividend this year, how much will the common stockholders receive?

A) $152,800

B) $250,000

C) $97,200

D) $217,600

4. If Amelia decided to purchase 20,000 shares of its common stock to be used for future stock option plans at $11.40 per share, what journal entry would the company make?