Text Chart Shape MOD View Zoom insert Identify whether each of the following statements is True or False. True False 1. Mandatorily redeemable preferred stock is classified as owner's equity and is disclosed after common stock. 2. Property dividends are valued at the fair market value of the property 3. When a company pays a liquidating dividends, it debits the common stock for the amount. 4. Scrip dividends are a liability on the date of declaration 5. Stock dividends of 45% of the outstanding shares of stock are valued at fair market value on the date of declaration 6. If a company has cumulative preferred stock, the dividends in arears must be subtracted from the net income in the numerator of basic earnings per share. 7. Cash dividends become a liability to the corporation when paid. 8. Unrealized gains from Available for Sale securities are reported as other comprehensive income. Investments in bonds may be classified as trading securities, available-for-sale securities, and held-to-maturity securities. 9. 10. Z Company has significant influence over G Company and owns 40% of the voting stock of Company, Z Company need to use the equity method of accounting for the investment in G Company. 11. Unrealized gains and losses from available-for-sale securities that result from the change in fair value during the period must be reported on the income statement. 12. The temporary gains or losses from held-to-maturity must be reported in income for the current year. 13. The equity method of accounting requires that a company adjust the cost of the investment to fair value at the end of each period. 14. Held-to-maturity securities are carried at amortized cost using the effective interest method. 15. Stock Appreciation rights are a form of compensation that allows employees to purchase shares at a specific price. 16. Stock options are a form of compensation which allows employees