Ifthe company's preferred stock is cumulative and 20X7 dividends are the only dividends in arrears, What portion ofa 20X8 dividend declaration of S20,OOO will go to the common A. sooo B. SOOO c $12,000 D. $14,000 S20,ooo Dividends become a liability A, on the date of record. B, on thc date of payment C. on the date of declaration. b. Dividends are never a liability because a company is not legally required to pay dividends even when declared or recorded. . In the purchase ofa used truck for S15,000, additional costs incurred in its acquisition included S250 delivery costs, S900 of sales tax and S300 for an engine overhaul that was deemed necessary prior to its initial use. It is expected that annual recurring engine maintenance costs will run approximately S250 per year beginning one year following the date of acquisition. The total capital expenditures for the truck that should be included in asset amount to A. B. S16.450. E. S15,ooo. 10. On July 1, 20X5 a company purchased equipment for S25,000. The equipment has a 10 yea estimated userul life, at the end or Which time its salvage value is estimated to be SS,OOO. Assuming the company uses the straight line method ofdepreeiation, the company's journa entry for the equipment's depreciation for the year ended 12131/X6 would include a credit t B. Equipment for S2,OOO. C. Accumulated Depreciation for D. Accumulated Depreciation for S2,000. E. none of these