Tantramar Corporation Has the Following Shareholders Equity on July 31

question 11

Multiple Choice

Tantramar Corporation has the following shareholders equity on July 31, 2013:
-Assume that on June 15, 2014, Tantramar paid the preferred dividend for the current year (there were no dividends in arrears) and paid a dividend of $2 to each common shareholder. The company earned $45,000 in profit during 2014. The July 31, 2014 financial statements will show an ending balance in retained earnings of

• A) $500,000.
• B) $545,000.
• C) $475,000.
• D) $430,000.

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Definitions:

Contract Price

The agreed-upon price for goods or services that is specified in a contractual agreement.

Critical Event

A significant occurrence that has a substantial impact on the operations or financial health of a business or market.

Measurability Conditions

Criteria required to recognize a financial transaction, including the ability to reliably measure the transaction's impact on the financial statements.

Percentage-Of-Completion Method

An accounting method used to recognize revenues and expenses of long-term contracts in proportion to the work completed.