Identify whether each of the following statements is True or False. True False 1. Mandatorily redeemable preferred stock is classified as a liability. 2. Property dividends are valued at the fair market value of the property. 3. When a company pays a liquidating dividends, it debits the common stock for the amount. 4. Cash dividends are a liability on the date of record. 5. Stock dividends of 15% of the outstanding shares of stock are valued at par value on the date of declaration. 6. If a company has cumulative preferred stock, the dividends in arears must be subtracted from the net income in the numerator of diluted earnings per share. 7. Stock dividends become a liability to the corporation when issued. 8. Unrealized gains from Available for sale securities are reported as other comprehensive income. Investments in bonds may be classified as trading securities, available-for-sale securities, and held-to-maturity securities. 9. 10. Stock options are a form of compensation which allows employees to receive stock or cash for the difference between stated value and the market value