Which of the following statements is incorrect? Multiple Choice A corporation may file suit in its own name without the principals filing suit. A corporation may form a contract in its own name without the principals guaranteeing the contract. A corporation can be sued without the principals being sued. A corporation may not incur obligations separate from those of its principals.

Stosch company's balance sheet reported assets of $112,000, liabilities of $29,000 and common stock of $26,000 as of december 31, year 1. if retained earnings on the balance sheet as of december 31, year 2, amount to $74,000 and stosch paid a $28,000 dividend during year 2, then the amount of net income for year 2 was which of the following? a)$23,000 b) $35,000 c) $12,000 d)$42,000