Exam 8: Proprietorships, Partnerships, and Corporations

Curtain Company paid dividends of $7,000; $11,000; and $14,000 during Year 1, Year 2, and Year 3, respectively. The company had 1,400 shares of 7.0%, $100 par value preferred stock outstanding that paid a cumulative dividend. The amount of dividends received by the common shareholders during Year 3 would be:

On January 2, Year 1, Torres Corporation issued 16,000 shares of $12 par-value common stock for $16 per share. Which of the following statements is true?

Vailes Company reissued 200 shares of its treasury stock. The treasury stock originally cost $25 per share and was reissued for $35 per share. Which of the following accurately reflects how the reissue of the treasury stock would affect Vailes's financial statements?

Which of the following statements about the impact of treasury stock on the amounts reported on the balance sheet is correct?