Provide explanation or calculations (if its possible)

QUESTION 1 All things being equal, a shareholder would prefer that the business had: 1. a higher debt-to-total-assets ratio II. a higher profit margin ratio O I only O ll only Both I and II. O Neither I nor II QUESTION 2 A company that disposes of a significant component of a business (discontinued operations) must report net of tax: O any income or loss from the operation of that component. O any gain or loss on the disposal of that component. O both any income or loss from the operation and any gain or loss on the disposal of that component O no answer is correct. QUESTION 3 Entity K is authorized to issue 1,000,000 shares of $2 par value common stock. On January 15, Entity Kissued 700,000 shares of stock at $7 per share. The journal entry to record the transaction on January 15 includes: O a credit to Common Stock for $4,900,000 O a credit to Paid-In Capital In Excess of Par, Common Stock for $1,400,000 O a credit to Common Stock for $1,400,000 O a debit to Cash for $1,400,000 QUESTION 4 Entity H reports: Building (at cost) $400,000 and Accumulated Depreciation, Building of $198,000. How should this be shown on its classified balance sheet? The cost of the building less accumulated depreciation resulting in a book value of S202,000 should be shown under Property, Plant, and Equipment O Building at $400,000 should be shown under Property, Plant, and Equipment, and Accumulated Depreciation of $198,000 should be shown under Current Liabilities. Book value of S202,000 should be shown under Intangible Assets. Book value of $598,000 should be shown under Property, Plant, and Equipment