Mountain Corp $1 =$ Dividends Declared and Paid to Mountain's Shareholders

question 49

Multiple Choice

Mountain Corp. experienced the following events and transactions during 2017:
$1 =$ Dividends declared and paid to Mountain's shareholders
$2 =$ Cost of goods sold
$3 =$ Gain on disposal of a major segment of the business
$4=$ Depreciation expense
$5=$ Gain from early debt retirement
Using the numbers of the events and transactions, identify which of the following sequences is the correct order for presenting the items on the income statement.

• A)5, 1, 3, 2
• B)2, 4, 5, 3
• C)4, 5, 2, 3
• D)2, 4, 3, 5, 1

---

Definitions:

Pleasure Principle

In psychoanalytic theory, the instinctual seeking of pleasure and avoidance of pain to satisfy biological and psychological needs.

Ego

In psychoanalytic theory, the part of the personality that mediates demands between the id, superego, and reality; operates on the reality principle.

Oral Stage

A phase in Freudian psychosexual development where an infant's pleasure centers are in the mouth, leading to behaviors like sucking and biting.

Freud

Refers to Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.