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tne. has 2,000 shares ot 5, $50 par value, cumulative ed stock and 50,000 shares of si par value common stock canding at December 31,

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tne. has 2,000 shares ot 5, $50 par value, cumulative ed stock and 50,000 shares of si par value common stock canding at December 31, 2004, and December 31, 2005. The board directors declared and paid a 4,000 dividend in 2004. In 2005. 5.Lopez, 20,000 of dividends are deciared and paid. What are the dividends received by the preferred and common shareholders in 20052 Preferred Common a $14,000 b $10,000 C. $6, 000 d. $5,000 $8, 000 s10, 000 $14,000 $15, 000 16. The board of directors must assign a per share value to a stock dividend declared that is a. greater than the par or stated value. b. less than the par or stated value. c. equal to the par or stated value. d. at least oqual to the par or stated value. statement that "Bond prices vary inversely with changes in. the market interest rate" means that if the a. market interest rate increases, the contractual interest rate will decrease. b. contractual interest rate increases, then bond prices w11 go down. c. market interest rate decreases, then bond prices will go up. d. contractual interest rate increases, the market interest rate will decrease. 18. The present value of a s10,000, 5-yeas bond, will be less than $10,000 if the a. contractual interest.rate is Less.than the market interest rate. b. contractual interest rateois greater than the market interest rate. c. bond is convertible. d. contractual interest rateis equal to the market interest rate 19. if bonds with a face value of $60,000 are converted into common stock when the carrying value of the bonds is $54,000, the entry to record the conversion will include a debit to a. Bonds Payable for $60,000 b. Bonds Payable for $54,000 c. Discount on Bonds Payable for $6,000 d. Bonds Payable equal to the market price of the bonds on the date of conversion

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