ACC 304 All Assignments ACC 304 All Assignments | Page 44

c. uniform value stock.
d. par value stock.
S35. Which of the following is not a legal restriction related to profit
distributions by a corporation?
a. The amount distributed to owners must be in compliance with the
state laws governing corporations.
b. The amount distributed in any one year can never exceed the net
income reported for that year.
c. Profit distributions must be formally approved by the board of
directors.
d. Dividends must be in full agreement with the capital stock contracts
as to preferences and participation.
S36. In January 2012, Finley Corporation, a newly formed company,
issued 10,000 shares of its $10 par common stock for $15 per share. On
July 1, 2012, Finley Corporation reacquired 1,000 shares of its