Overton,Inc

question 94

Multiple Choice

Overton,Inc.had the following transactions in 2017,its first year of operations:
• Issued 15,000 shares of common stock.Stock has par value of $0.01 per share and was issued at $39.00 per share.
• Earned net income of $300,000.
• Paid dividends of $15.00 per share.
At the end of 2017,what is total stockholders' equity?

• A)$585,000
• B)$660,000
• C)$75,000
• D)$1,110,000

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Definitions:

Overhead

The ongoing administrative, operational, or general business expenses that are not directly tied to the production of goods or services.

Depreciation Costs

The allocation of the cost of a tangible asset over its useful life.

Relevant Costs

All costs that vary with the consequence of a decision.

Irrelevant Costs

Costs that will not be affected by a decision and thus should not influence the decision-making process.