On January 1, 2020, Guided Light Corporation's Retained Earnings Account

question 57

Multiple Choice

On January 1, 2020, Guided Light Corporation's Retained Earnings account had a balance of $275,000. During 2020, cash dividends of $50,000 were declared and stock dividends with a
Market value of $40,000 were declared. Net income for 2020 amounted to $120,000. What is the balance in Retained Earnings appearing on the statement of shareholders' equity on December 31,
2020?

• A) $305,000
• B) $345,000
• C) $185,000
• D) $395,000

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Definitions:

Trauma

Deeply distressing or disturbing experiences that can have long-lasting psychological impacts, affecting an individual's emotional well-being and functioning.

Spotlight Effect

The belief that others are paying more attention to one's appearance and behavior than they actually are.

Audience Effect

The phenomenon where an individual's performance is influenced by the presence of others, typically improving on simple or well-rehearsed tasks and declining on complex or new ones.

Transparency Effect

The belief or expectation that one's personal, internal states are more apparent to others than they actually are.