Mark the following statements as true or false and select the appropriate answer below.

___ Dividends are paid on the number of shares of issued stock.

___ The sale of treasury stock for an amount above its purchase price will result in a gain being recorded.

___ A 2-for-1 stock split will reduce total contributed capital.

Group of answer choices

True, True, True

True, False, True

True, False, False

False, True, False

False, False, False

A company was organized on January 1, 2011. During its first year, the company issued the following stock and have made no other stock issuances since:

Preferred Stock (4%, $80 par, cumulative, 10,000 shares authorized, 6,000 issued and outstanding)

Common Stock ($5 par, 100,000 authorized, 80,000 issued, 70,000 outstanding)

On December 31, the company declared the following cash dividends in each respective year:

2011: $5,000; 2012: $12,000; 2013: $54,000

Determine the amount of dividends that the common stockholders will receive in 2013:

Group of answer choices

$19,200

$13,400

$34,800

$54,000

$0