1. income taxes to a partnership: Select one: A) are an obilation of the partner

Question

1. income taxes to a partnership:

Select one:

A) are an obilation of the partnership

B) are an obligation to each partner only when cash is recieved

C) Are an obligation to each partner based on their share of profits

D) Are not an obligation to each partner since a partnership does not pay tax

2. Shown below is information relating to the stockholders' equity of reeve corporation as of december 31, 2015:

8% cumulative preferred stock, $100 par ...........................................$600,000

Common stock, $10 par, 500,000 shares authorized, 120,000

shares issued and outstanding........................................................$1,200,000

Additional paid-in capital: Common stock........................................$600,000

Retained earnings (Deficit).............................................................($60,000)

Dividends in arrears......................................................................$48,000

Refer to the information above. What was the original issue price per share of common stock?

A. $10.00 per share

B. $2.40 per share

C. $15.00 per share

D. $8.00 per share

3. The numerator in calculating earnings per share is reduced for :

A) Noncumulative preferred dividends declared

B) Common dividends

C) Common stock dividends

D) any form of dividend

Explanation / Answer

2.C. $15.00 per share

3.A) Noncumulative preferred dividends declared

Any dividend to prefereed stockholders is reduced fro calculating earning per share because it is calculated for earning of common stockholders and dividend declared to common stockholders is also a form of earning to common stockholders.

Common Stock issued and outstanding a 1200000 Additional paid in capital: Common Stock b 600000 Total c=a+b 1800000 No. of common shares outstanding d 120000 Original price of a share c/d 15

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