Reference no: EM132756519

Problem 1: The Common Stock of the business totals $40,000. The Additional Paid-in Capital, Common Stock totals $3,000 and the Retained Earnings has a deficit balance of $12,000. What is the total stockholders' equity of the corporation?

A. $32,000

B. $40,000

C. $52,000

D. $55,000

E. None of the above

Problem 2: Preferred Stock, with a par value of $50 per share and a 10% dividend preference, is listed on the balance sheet with a total equity balance of $1,000,000. If dividends are declared and paid at the end of the year, what amount of dividends will be paid to the preferred shareholders?

A. $100,000

B. $200,000

C. $225,000

D. $250,000

E. $275,000