Lan Co. had 250,000 shares of common stock issued and outstanding at January 1, 20X6. During 20X6, Lan took the following actions:
March 15Declared a 3-for-1 stock split, when the fair value of the stock was $80 per share.
December 15Declared a $1.50 per share cash dividend.
In Lan's statement of stockholders' equity for 20X6, what amount should Lan report as dividends?
A.	$1,125,000
B.	$750,000
C.	$375,000
D.	$250,000

On May 18, 20X4, Son Corp.'s board of directors declared a 20% stock dividend.
The market price of Son's 5,000 outstanding shares of $4 par value common stock was $13 per share on that date. The stock dividend was distributed on July 21, 20X4, when the stock's market price was $15 per share.
What amount should Son credit to additional paid-in capital for this stock dividend?
A.	$45,000
B.	$4,500
C.	$11,000
D.	$9,000

The owners' equity section of a firm includes (1) $20,000 of 9%, $100 par cumulative preferred stock, and (2) $60,000 of $5 par common stock. There is additional paid-in capital on both issues. The preferred is fully participating and there are two years of dividends in arrears as of the beginning of the current year. If the firm pays $50,000 in dividends, what amount is allocated to common?
A.	$50,000
B.	$15,200
C.	$34,800
D.	$0