Decide whether each of the following statements is true or false.

a$.$ The policy$-$making body in a corporation is called the board of directors.

The owner of $100$ shares of preferred stock has greater voting rights than the owner of $100$ shares

b$.$ of common stock.

c$.$ Par$-$value stock is worth more than no$-$par value stock.

d$.$ Issuing $1,000$ shares of $$5$ par$-$value stock at $$12$ increases contributed capital by $$12,000.$

Data table

Stockholders' Equity

Amount

Capital stock:

Class A common stock, voting, $$2$ par value, authorized,

issued, and outstanding $1,000,000$ shares

Class B common stock, nonvoting, no par value, authorized,

issued, and outstanding $45,500,000$ shares

$2,000,000$

issued, and outstanding $45,500,000$ shares

Requirements

a$.$ Record the issuance of the Class A common stock for cash. Use Mountain's

account titles.

b$.$ Record the issuance of the Class B common stock for cash. Use Mountain's

account titles.

c$.$ How much of Mountain's stockholders' equity was contributed by

the stockholders? How much was provided by profitable operations? Does

this division of equity suggest that the company has been successful? Why

or why not?

d$.$ Write a sentence to describe what Mountain's stockholders' equity means.