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:

Control

The power to influence or direct people's behavior or the course of events.

Creativity

The ability to produce original and unusual ideas, or to make something new or imaginative.

Innovation

The introduction of something new, such as an idea, method, technology, or product, that creates value or makes significant improvements over existing solutions.

Business Mortality

The concept or rate at which businesses fail or cease operations, often used in studies of business lifespan and success factors.