On May 12, Year 15, West purchased 6% of Ace Corp.'s outstanding $3 cumulative preferred stock and 7% of Ace's outstanding common stock. These are the only two classes of stock authorized by Ace's charter. Both classes of stock are traded on a national stock exchange. Ace uses the calendar year for financial reporting purposes. For Year 15 and Year 16, Ace neither declared dividends nor recorded dividends in arrears as a liability on its books. On February 8, Year 17, West, a 10% shareholder, sent a written demand to examine Ace's books and records to determine Ace's financial condition. Ace has refused to permit West to examine its books and records.

Complete each statement by selecting from the option list provided the appropriate action for each party. The first two statements should be answered based on the information in the first paragraph. Statements 3 through 5 should be answered based on the circumstances of Ace's refusal to permit examination of its books and records. Each choice may be used once, more than once, or not at all.

1. West will 2. Ace should 3. Regarding the dividends, West will 4. West is entitled to 5. Ace is required to