At the Beginning of 2015, Flaherty Company Had Retained Earnings

question 92

Multiple Choice

At the beginning of 2015, Flaherty Company had retained earnings of $350,000. During the year Flaherty reported net income of $100,000, sold treasury stock at a "gain" of $36,000, declared a cash dividend of $60,000, and declared and issued a small stock dividend of 3,000 shares ($10 par value) when the fair value of the stock was $20 per share. The amount of retained earnings available for dividends at the end of 2015 was

• A) $330,000.
• B) $360,000.
• C) $366,000.
• D) $396,000.

---

Definitions:

Simplify

To reduce something to its basic or essential form, often by removing complexity.

Algebraic Expression

An expression consisting of constants, variables, coefficients, and operating symbols (like +, -, *, /) that represents a mathematical relationship or a rule.

Like Terms

mathematical expressions that have the same variable raised to the same power.

Simplify

To make something less complex or easier to understand, often used in mathematical or problem-solving contexts.