Wendell Company Provided the Following Pertaining to Its Recent Year

question 76

Multiple Choice

Wendell Company provided the following pertaining to its recent year of operation: • 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 costing $9,000 was sold for $7,000.
How much did Wendell's capital in excess of par increase during the recent year of operation?

• A) $60,000.
• B) $58,000.
• C)$56,000.
• D)$24,000.

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Definitions:

Maturation

The process of growth and development, either in biological organisms or in organizations as they evolve and reach full potential.

Diffuse

To spread or scatter widely or thinly; often relating to the dissemination of ideas or technologies.

Try-demo Units

Sample products or systems that are offered for trial use to demonstrate their capabilities or features before a purchase decision is made.

Trialability

The degree to which a product or service can be experimented with on a limited basis before making a purchase decision.