Banner publications was organized early in 2012 with authorization to issue 10,000 shares of $100 par value preferred stock and 1 million shares of $1 par value common stock. all of the preferred stock was issued at par, and 400,000 shares of common stock were sold for $15 per share. the preferred stock pays a 10 percent cumulative dividend. during the first five years of operations (2010 through 2014) the corporation earned a total of $4,100,000 and paid dividends of $.80 per share each year on the common stock. in 2015, however, the corporation reported a net loss of $1,250,000 and paid no dividends. prepare the stockholder’s equity section of balance sheet at december 31, 2012.

In year 1, the bennetts' 25-year-old daughter, jane, is a full-time student at an out-of-state university but she plans to return home after the school year ends. in previous years, jane has never worked and her parents have always been able to claim her as a dependent. in year 1, a kind neighbor offers to pay for all of jane's educational and living expenses. which of the following statements is most accurate regarding whether jane's parents would be allowed to claim an exemption for jane in year 1 assuming the neighbor pays for all of jane's support? a.no, jane must include her neighbor's gift as income and thus fails the gross income test for a qualifying relative.b.yes, because she is a full-time student and does not provide more than half of her own support, jane is considered her parent's qualifying child.c.no, jane is too old to be considered a qualifying child and fails the support test of a qualifying relative.d.yes, because she is a student, her absence is considered as "temporary." consequently she meets the residence test and is a considered a qualifying child of the bennetts.