Quiz Answers for Ch15,16,17
Ch15 Question 1 of 10 | 1.0 Points |
On December 1, 2012, Abel Corporation exchanged 30,000 shares of its $10 par value common stock held in treasury for a used machine. The treasury shares were acquired by Abel at a cost of $40 per share, and are accounted for under the cost method. On the date of the exchange, the common stock had a fair value of $55 per share (the shares were originally issued at $30 per share). As a result of this exchange, Abel's total stockholders' equity will increase by | | | | A. $1,200,000. | | | | | B. $1,350,000. | | | | | C. $300,000. | | | | | D. $1,650,000. | |
Answer Key: D | Question 2 of 10 | 1.0 Points |
If management wishes to "capitalize" part of the earnings, it may issue a | | | | A. property dividend. | | | | | B. stock dividend. | | | | | C. liquidating dividend. | | | | | D. cash dividend. | |
Answer Key: B | Question 3 of 10 | 1.0 Points |
Anders, Inc., has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2013. There were no dividends declared in 2011. The board of directors declares and pays a $90,000 dividend in 2012 and in 2013. What is the amount of dividends received by the common stockholders in 2013? | | | | A. $90,000 | | | | | B. $0 | | | | | C. $30,000 | | | | | D. $50,000 | |
Answer Key: C | Question 4 of 10 | 1.0 Points |
Luther Inc., has 3,000 shares of 6%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2013, and December 31, 2012. The board of directors declared and paid a $7,500 dividend in 2012. In 2013, $36,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2013? | | | | A. $25,500 | | | | | B. $ 9,000 | | | | | C. $18,000 | | | | | D.
On December 1, 2012, Abel Corporation exchanged 30,000 shares of its $10 par value common stock held in treasury for a used machine. The treasury shares were acquired by Abel at a cost of $40 per share, and are accounted for under the cost method. On the date of the exchange, the common stock had a fair value of $55 per share (the shares were originally issued at $30 per share). As a result of this exchange, Abel's total stockholders' equity will increase by | | | | A. $1,200,000. | | | | | B. $1,350,000. | | | | | C. $300,000. | | | | | D. $1,650,000. | |
Answer Key: D | Question 2 of 10 | 1.0 Points |
If management wishes to "capitalize" part of the earnings, it may issue a | | | | A. property dividend. | | | | | B. stock dividend. | | | | | C. liquidating dividend. | | | | | D. cash dividend. | |
Answer Key: B | Question 3 of 10 | 1.0 Points |
Anders, Inc., has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2013. There were no dividends declared in 2011. The board of directors declares and pays a $90,000 dividend in 2012 and in 2013. What is the amount of dividends received by the common stockholders in 2013? | | | | A. $90,000 | | | | | B. $0 | | | | | C. $30,000 | | | | | D. $50,000 | |
Answer Key: C | Question 4 of 10 | 1.0 Points |
Luther Inc., has 3,000 shares of 6%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2013, and December 31, 2012. The board of directors declared and paid a $7,500 dividend in 2012. In 2013, $36,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2013? | | | | A. $25,500 | | | | | B. $ 9,000 | | | | | C. $18,000 | | | | | D.