Use the Following Information for Questions

question 178

Multiple Choice

Use the following information for questions. Instanbul Corp.has outstanding 20,000 no par value, $0.80, preferred shares and 100,000 no par value common shares.Dividends have been paid every year except last year and the current year.The carrying value of the preferred shares is $200,000 and of the common shares is $300,000.
-Sofia Ltd.reported net income of $5,300,000 for 2014, and earnings per share of $5.00. Included in the net income was $750,000 of bond interest expense related to its long-term debt. The income tax rate for 2014 was 30%.Dividends paid on preferred shares were $1,000,000. The payout ratio on common shares was 25%.What were the dividends paid on common shares in 2014?

• A)$1,075,000
• B)$1,325,000
• C)$1,206,250
• D)$1,612,500

Determine the impact of seller statements and how they can constitute a warranty.

Recognize the rights of third parties and beneficiaries under warranty claims in the context of the UCC.

Explain the significance and effects of full warranties under the Magnuson-Moss Act.

Identify circumstances under which an implied warranty of fitness for a particular purpose is granted.

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Definitions:

Recession

An interval of short-term economic slump, where commercial activities and industrial operations decline, often determined by a fall in GDP for two back-to-back quarters.

Federal Reserve Bank

The central banking system of the United States, which regulates the U.S. monetary and financial system.

Salt Lake City

The capital and most populous city of Utah, known for its historic significance to the Church of Jesus Christ of Latter-day Saints and its nearby saltwater lake.

Kansas City

a city located in the state of Missouri, known for its jazz heritage, cuisine, and cultural contributions.