1. On January 2, 2007, Pacer Corporation issued 30,000 shares of 6% cumulative preferred stock at $100 par value. On December 31, 2010, Pacer Corporation declared and paid its first dividend. What dividends are the preferred stockholders entitled to receive in the current year before any distribution is made to common stockholders?

$720,000 

$0 

$180,000 

$540,000

 

2. The most appropriate basis for dividing partnership net income when the partners do not plan to take an active role in daily operations is

 salaries to the partners and the remainder on a fixed ratio.

 interest on capital balances and salaries to the partners.

 on a ratio based average capital balances.

 on a fixed ratio.

 

3. Finney is admitted to a partnership with a 25% capital interest by a cash investment of $90,000. If total capital of the partnership is $390,000 before admitting Finney, the bonus to Finney is 

$30,000. 

$15,000. 

$60,000. 

$45,000.

 

4. The entry to record the issuance of an interest-bearing note credits Notes Payable for the note's 

cash realizable value. 

maturity value. 

market value. 

face value.

 

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