A Company Has 2,000 Shares of $1 Par Value Common

question 183

Multiple Choice

A company has 2,000 shares of $1 par value common stock and 200 shares of 5%,$110 par,noncumulative preferred stock outstanding.The balance in Retained Earnings at the beginning of the year was $500,000.Net income for the current year was $300,000.If the company paid a dividend of $2 per share on its common stock,what is the balance in Retained Earnings at the end of the year?

• A)$800,000
• B)$805,100
• C)$794,900
• D)$494,900
• E)$194,900