At the beginning of 2011, Emily Corporation issued 20,000 shares of $100 par, 4%, cumulative, preferred stock for $110 per share. No dividends have been paid to preferred or common shareholders. What amount of dividends will a preferred shareholder owning 100 shares receive in 2013 if Emily pays $1,000,000 in dividends?

	$800.
	$1,320.
	$1,200.
	$20,000.

The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 24,000 shares issued, and 4,200 shares held as treasury stock. What is the entry for the dividend declaration?

Retained earnings	8,720
Dividends payable		8,720

Retained earnings	11,880
Cash		11,880

Retained earnings	11,880
Dividends payable		11,880

Retained earnings	8,720
Cash		8,720

Lundholm Company purchased a machine for $103,300 on January 1, 2011. Lundholm depreciates machines of this type by the straight-line method over a 10-year period using no salvage value. Due to a change in sales patterns, on January 1, 2013, management determines the useful life of the machine to be a total of five years. What amount should Lundholm record for depreciation expense for 2013? The tax rate is 40%. (Round your answer to the nearest dollar amount.)

	$18,594
	$20,660
	$27,547
	$16,528

On December 31, 2012, Beta Company had 310,000 shares of common stock issued and outstanding. Beta issued a 8% stock dividend on June 30, 2013. On September 30, 2013, 36,000 shares of common stock were reacquired as treasury stock. What is the appropriate number of shares to be used in the basic earnings per share computation for 2013?

	373,680.
	334,800.
	343,800.
	325,800.