Tantramar Corporation Has the Following Shareholders Equity on July 31

question 31

Multiple Choice

Tantramar Corporation has the following shareholders equity on July 31, 2013:
-Assume that during the following year the company had profit of $65,000 and declared and paid dividends of $15,000. The beginning balance of retained earnings on the statement of retained earnings for the year ended July 31, 2014 is

• A) $500,000.
• B) $565,000.
• C) $550,000.
• D) Cannot be determined from the information provided.

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Definitions:

Marginal Private Cost

The cost incurred by a firm for producing one additional unit of a good, exclusive of any external costs.

Technology Spillovers

Benefits that firms or countries obtain by imitating or learning from the innovations of others, often without incurring the cost of innovation.

Subsidies

Financial assistance grants or tax breaks provided by the government to support businesses, organizations, or individuals, encouraging production or consumption of certain goods and services.

Computer Chips

Small pieces of semiconductor material (usually silicon) with an integrated circuit (IC) used in electronic devices to perform computing tasks and other functions.