A Corporation Reported a Net Income of $120,000 for Its

question 75

Multiple Choice

A corporation reported a net income of $120,000 for its fiscal year and declared and paid cash dividends of $50,000.A stock dividend recorded at $80,000 was also distributed during the year.If the beginning balance of the Retained Earnings account was $200,000,the ending balance is

• A) $170,000.
• B) $190,000.
• C) $200,000.
• D) $270,000.

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Definitions:

Form 1040EZ

A simplified tax form for individuals with uncomplicated tax situations, no longer in use as of the 2018 tax year.

Interest Income

Income earned from deposit accounts or investments through the receipt of interest.

Dependent

A person, often a child or other family member, whose financial support and well-being are the responsibility of another, often affecting tax deductions.

Litigated Tax Disputes

Tax disagreements that have been brought before a court for resolution.