Hentges Co. pays a constant annual dividend of $2.50 per share and has 1,000 shares of common stock outstanding. The company- multiple choice from options below

• must always show a current liability on its balance sheet of $2,500 for dividends payable.
• can deduct $2,500 per year as a business expense as a result of its dividend payment.
• must declare each annual dividend before it becomes an actual liability.
• can be forced into bankruptcy by its shareholders if it fails to pay at least $12.50 per year in dividends.
• is obligated to continue paying $2.50 a share each year.