When preferred stock is cumulative, preferred dividends not declared in a period are never paid. called dividends in arrears. considered a liability. distributions of earnings. Carson packaging began business in 2015 by issuing 30,000 shares of $3 par common stock for $8 per share and 12,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $12. On its December 31, 2015 balance sheet, Carson Packaging would report Common stock of $240,000. Common stock of $90,000. Paid-In Capital of $90,000. Common stock of $360,000. Unearned Rent Revenue is reported as a current liability. debited when rent is received in advance. a contra account to Rent Revenue. a revenue account. All of the following are property, plant, and equipment except supplies. land. buildings. machinery. If a plant asset is retired before it is fully depreciated, and the salvage value received is less than the asset's book value, additional depreciation expense must be recorded. a gain on disposal occurs. there is no gain or loss on disposal. a loss on disposal occurs. The basic accounting equation may be expressed as Assets - Liabilities = Stockholders' Equity. Assets = Liabilities + Stockholders' Equity. Assets - Equities. All of these answers are correct