2 Answer YES or NO or provide the answer as appropriate. 1 Can it be appropriate to present Preferred Stock as a Liability rather than in the Equity section? 2 You are the CFO of a public company that has been managing a substantial stock repurchase program. An investor contacts you to inquire about buying shares that you now hold as Treasury Stock. They will pay a substantially higher price than the market price shown in the Treasury Stock account. Does US GAAP permit you to record the "surplus" (the difference between the higher re-sale price and the lower Treasury Stock carrying amount) as Income anywhere in the Statement of Comprehensive Income? 3 An investor in your African subsidiary owns 60% of the common stock of that subsidiary and exercises control over it. Is their equity position a "noncontrolling interest"? 4 When Treasury Stock is resold, it can be resold at prices that are both higher and lower than the cost or price paid to acquire it. If the stock price on re-sale is lower, and if the Treasury Stock APIC account is already at "0" where would you record the accounting "deficit" on re- sale? 5 The Treasury Stock account has been described as a "contra-equity" account. Aside from "0" balances, do expect the Treasury Stock account to be shown in Equity as a positive or a negative balance? There are three dates that figure prominently in the accounting for Dividends: the Declaration Date, the Record Date and the Payment Date. According to your textbook on which date would the Dividends be recorded as a Debit to Retained Earnings, thereby reducing that Equity account