Q1. Ayayai Corp. has 15000 shares of 6%, $100 par value, cumulative preferred stock and 75000 shares of $1 par value common stock outstanding at December 31, 2017. What is the annual dividend on the preferred stock?
$90000 in total
$60 per share
$6000 in total
$0.06 per share
Q2. Equipment was purchased for $86400 on January 1, 2016. Freight charges amounted to $3400 and there was a cost of $10000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $17000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2017, if the straight-line method of depreciation is used?
$33120.
$16560.
$14600.
$28480
Q3. Kingbird, Inc. purchased a delivery truck with a $58000 list price. The company was given a $4100 cash discount by the dealer, and paid $3100 sales tax. Annual insurance on the truck is $1300. As a result of the purchase, by how much will Kingbird, Inc. increase its truck account?
$53900.
$58300.
$58000.
$57000.