During 2008, Bascom Bakery Paid Out $33,525 of Common Dividends

question 47

Multiple Choice

During 2008, Bascom Bakery paid out $33,525 of common dividends. It ended the year with $197,500 of retained earnings versus the prior year's retained earnings of $159,600. How much net income did the firm earn during the year?

• A) $71,425
• B) $74,996
• C) $78,746
• D) $82,683
• E) $86,818

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Definitions:

False Pretense

The illegal obtaining of another’s property by making a materially false representation of an existing fact, with knowledge of the falsity of the representation and with the intent to defraud.

Magazine Subscriptions

Agreements to receive or deliver a magazine periodically, typically in exchange for a subscription fee.

False Token

A counterfeit or fake symbol, object, or piece of information used to deceive or commit fraud.

Counterfeit Money

Fake currency produced without the legal sanction of the state or government, intended to imitate and replace genuine money.