Reference no: EM131916851
1. The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $900,000 in the common stock account and $5.95 million in the additional paid-in surplus account. The 2009 balance sheet showed $785,000 and $8.7 million in the same two accounts, respectively. If the company paid out $650,000 in cash dividends during 2009, What was the cash flow to stockholders for the year? $250,000 $-1,985,000 $135,000 $1,985,000 $8,835,000.
2. Lynn purchases a house for $52,000. She converts the property to rental property when the fair market value is $115,000. After deducting depreciation (cost recovery) expense of $1,130, she sells the house for $120,000. What is her recognized gain or loss? a. $0 b. $6,130 c. $37,630 d. $69,130.
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