The acquisition of treasury stock by a corporation increases its total assets and total stockholders' equity. decreases its total assets and total stockholders' equity. has no effect on total assets and total stockholders' equity. requires that a gain or loss be recognized on the Income statement. Outstanding stock of the West Corporation included 20,000 shares of exist5 par common stock and 5,000 shares of 6%, exist10 par non-cumulative preferred stock. In 2009, West declared and paid dividends of exist2,000. In 2010, West declared and paid dividends of exist6,000. How much of the 2010 dividends was distributed to preferred shareholders'? exist4,000. exist7,000. exist3,000. None of the above The effect of the declaration of a cash dividends by the board of directors is to