Wendell Company Provided the Following Pertaining to Its Accounting Year

question 122

Multiple Choice

Wendell Company provided the following pertaining to its accounting year that ended December 31,2019: • Common stock with a $10,000 par value was sold for $50,000 cash
• Cash dividends totaling $20,000 were declared,of which $15,000 were paid
• Net income was $70,000
• A 5% stock dividend resulted in a common stock distribution,which had a $5,000 par value and a $23,000 market value
• Treasury stock repurchased in a prior year for $9,000 was resold for $7,000 and in the journal entry to record the sale,Additional paid-in capital was debited for the amount of the difference between the repurchase price and the resale price
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What is the amount of the increase in Wendell's retained earnings for the year ended December 31,2019?

• A)$32,000.
• B)$25,000.
• C)$29,000.
• D)$27,000.

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Definitions:

Relevant Aspects

Pertinent features or considerations that are directly related to the matter at hand or under discussion.

Forced-Distribution

A performance management system where employees are ranked and rated according to a pre-determined distribution curve, often leading to a certain percentage of employees being classified in categories such as high, medium, or low performers.

Performance Measurement

The process of quantifying the efficiency and effectiveness of past actions, using various indicators to assess outcomes against set standards or objectives.

Quality

The degree to which a product, service, or process meets or exceeds customer expectations or standards.