Question 5 (1 point) PAC Strategic Inc. has sold its baby food division in the current year. PAC has a $35,000 loss from operation of the baby food division and a loss on sale of the division's assets of $20,000. Assuming PAC has a tax rate of 30%, the total loss from discontinued operations reported on PAC's income statement is $55,000 $44,500 $38,500 $16,500 Question 6 (1 point) A stock dividend is a distribution of Cash to shareholders Corporations own shares to shareholders Another company's shares to shareholders Property to shareholders Question 7 (1 point) Chimo Ltd reported profit of $1,000,000. It has no preferred shares. At the beginning of the year it had 1,000 common shares and issued a further 200 shares at the start of the fourth month. Chimo's earnings per share is $1,000 $952 $909 $869 Question 8 (1 point) A change in accounting policy is permitted if the shareholders vote for the change whenever management wishes, as long as the effects of the change are clearly disclosed if the new principle results in a more reliable and relevant presentation of events or transactions whenever management needs to improve the company's profit