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14. The following information has been taken from the ledger accounts of the corporation: Total income since incorporation $333,000: Total cash dividends paid 54,000; Total value of stock dividends distributed $32,000; Gains on treasury stock transactions $19,000, Accrued liabilities $5. Unamortized discount on bonds payable $32,000. The current balance of retained earnings is $242,000 $247,000 $266,000 D) $215,000 ANSWER: A) BY C B 15.A stock dividend of less than 20% is.considered a small stock dividend. As such, the dividend should be based on the market price per share B) cost per share par value per share D) redemption value per share ANSWER: A 16.A company issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $115,000. The market price of the common shares is $172 each and market price of the preferred is $215 each. The total amount allocated to the common issue (par account plus paid-in-excess account) is A $92,000 B) $87,000 C) $100,000 D) $95.000 500 x 172-86.000 * 115,000 = 107500 100 x 215-21 500 92.000 ANSWER: A 107,500 17. A company issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $115,000. Only the market price of the common stock is known and it is $200 per share. The total amount allocated to the preferred issue par account plus paid-in-excess account) is $15,000 B) $100,000 C) $10,000 D $115,000 ANSWER: 115,000 100,000 (soo x 200) T5.000

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