IB. EQUITY - Place T (True) or F (False) after each statement.

1. When common stock is issued for noncash assets, the assets received should be recorded at the par value of the stock issued. ___

2. Treasury stock should be shown as a deduction from total shareholders' equity. ___

3. The gain on sale of treasury stock should be reported in other gains and revenues section of the income statement. ___

4. Dividends in arrears on preferred stock should be classified as a liability on the balance sheet. ___

5. Any dividend other than a stock dividend reduces equity. ___

6. A corporation must pay dividends on treasury stock. ___

7. One of the major distinctions between a stock split and a stock dividend is the fact that a stock split alters the par value of the stock involved, while a stock dividend does not. ___

8. Antidilutive securities should be ignored in all calculations and should not be considered in computing diluted earnings per share. ___