Masterson Company Has 420,000 Shares of $10 Par Value Common

question 131

Multiple Choice

Masterson Company has 420,000 shares of $10 par value common stock outstanding. During the year Masterson declared a 15% stock dividend when the market price of the stock was $36 per share. Three months later Masterson declared a $.60 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by

• A) $2,683,800
• B) $2,268,000
• C) $ 415,800
• D) $ 396,000

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Definitions:

Indirect Quotation

A paraphrase or summary of someone else's words without directly quoting them, often introduced by a phrase like "he said that..." or "according to..."

Quotation Marks

Punctuation marks used in pairs to indicate the beginning and end of a quotation or a direct speech within a text.

Plagiarism

The act of using someone else's work or ideas without giving proper credit, thereby presenting it as one's own.

Summarizing

The act of briefly presenting the main points or essence of a longer text or speech in a concise form.