A Company Has 3,000 Shares of $2 Par Value Common

question 72

Multiple Choice

A company has 3,000 shares of $2 par value common stock and 1,500 shares of 8%,$150 par,noncumulative preferred stock outstanding.The balance in Retained Earnings at the beginning of the year was $400,000.The net loss for the current year was $30,000.If the company paid a dividend of $1 per share on its common stock,what is the balance in Retained Earnings at the end of the year?

• A)$349,000
• B)$365,800
• C)$451,000
• D)$400,000
• E)$409,000

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