Wendell Company Provided the Following Pertaining to Its Recent Year

question 56

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 contributed capital increase during the recent year of operation?

• A) $15,000.
• B) $73,000.
• C)$58,000.
• D)$75,000.

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Definitions:

Cognitive Ability

The mental capacity for processing information, solving problems, making decisions, and learning new concepts.

Cognitive Ability

Refers to the mental capabilities to reason, plan, solve problems, think abstractly, comprehend complex ideas, learn quickly, and learn from experience.

Cognitive Ability

The intellectual capacity to think, analyze, and solve problems, often measured through IQ tests and specific cognitive assessments.

Cognitive Ability

A measure of an individual's mental capacity for problem-solving, understanding concepts, learning efficiency, and other intellectual abilities.