Please answer these questions with an explanation so that I can understand how you got to them.

Problem 5 [16 points} Rizzo Corporation has 43:000 shares of $50 par value, 3%, preferred m PfS} and l shares of $5 par value common stock {US} outstanding at December 31, 213213. All events are in chronology :11 time order below. Required: Answer the questions in each of the following {chronological} situations. 5a) Assuming,Ir that the cost method is used by Rizzo, what entry is recorded if 9, shares of common stock are reaoquired for a stock option plan when the market price is $22 per share? 5b) Assume the preferred stock is not participating and not cumulative= and one's year's PIS dividend is in arrears (was not paid). A 6% cash dividend is declared for DIS holders. Please compute the amrmnt of CIS r35 PIS dividends to be paid, and provide the entry [list separately! for the declaration ofthe dividends on both the CFS and PIS. Sc reissues (sells) 500 shares of Te\" 5 for $25 per share. 1alvflcrat entry should be recorded by Rizzo assuming the cost method is used? 5d) Assume that: Rizzo now reissues (sells) 500 shares of Te\" 5 for $13 per share. Please provide the entry that would be made in this case