Fargo Company's outstanding stock consists of 350 shares of noncumulative 5% preferred stock with a $10 par value and 6,000 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.

	Dividends Declared & Paid
year 1	$	34,000
year 2	$	6,000
year 3	$	43,000

The amount of dividends paid to preferred and common shareholders in year 1 is:

• $175 preferred; $33,825 common.

• $3,500 preferred; $30,500 common.

• $34,000 preferred; $0 common.

• $31,7500 preferred; $2,250 common.

• $17,000 preferred; $17,000 common.

2.

Which of the following would be considered a long-term asset?

Multiple Choice

• Cash

• I do not know

• Inventory

• Payroll taxes payable

• Equipment