PLEASE ANSWER ALL THE QUESTIONS

1. A company ends Year One with 100,000 shares of common stock and 30,000 shares of preferred stock outstanding. Net income for the year is reported as $400,000. During the year, the company paid a $1 per share cash dividend on its common stock and a $2 per share cash dividend on its preferred stock. The number of preferred shares did not change during the year. The number of common shares at the beginning of the year was 80,000 and an additional 20,000 shares were issued on July 1. Determine the companys basic earnings per share.

Group of answer choices

$3.84 per share

$5.00 per share

$4.00 per share

$4.44 per share

$3.78 per share

2. Arnold Corporation issues a 10% stock dividend on its $2 par value common stock when the stocks market value is $10 per share. Arnold had 1,000 shares issued prior to the dividend. To record the issuance of stock dividend, retained earnings should be debited for $1,000.

Group of answer choices

True

False

3. Ernie Miller wishes to start a business where he will be the sole owner. He wishes to choose the easiest form to start up and is not concerned about liability. Which of the following forms would be the best choice for Ernie?

Group of answer choices

Non-profit organization

Corporation

Proprietorship

Co-operative society

Partnership

4. Limited liability means:

Group of answer choices

any owner can obligate the business and other owners for any unpaid debt.

no separation exists between the business and the ownership.

owners are personally liable for all of the business debts.

the income of the entity will be subject to double taxation.