A Company Has 5,000 Shares of $1 Par Value Common

question 150

Multiple Choice

A company has 5,000 shares of $1 par value common stock and 6,000 shares of 2%,$98 par,noncumulative preferred stock outstanding.The balance in Retained Earnings at the beginning of the year was $750,000.Net income for the current year was $400,000.If the company paid a dividend of $3 per share on its common stock,what is the balance in Retained Earnings at the end of the year?

• A)$1,123,240
• B)$1,135,000
• C)$1,150,000
• D)$735,000
• E)$723,240

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Definitions:

Personality Disorder

Mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture.

Cluster A

A category in the DSM used to classify personality disorders characterized by odd or eccentric behaviors, including paranoid, schizoid, and schizotypal personality disorders.

Antisocial Personality Disorder

A mental condition characterized by a long-term pattern of disregard for, or violation of, the rights of others.

Cluster B

A category within the Diagnostic and Statistical Manual of Mental Disorders that includes personality disorders characterized by dramatic, overly emotional, or unpredictable thinking or behavior.