Bartlett Industries Bartlett Industries Began Operations on January 2, 2015, with an with an Investment

question 126

Multiple Choice

Bartlett Industries
Bartlett Industries began operations on January 2, 2015, with an investment of $50,000 by each of its two stockholders. Net income for its first year of business was $240,000. Bartlett Industries paid a total of $100,000 in dividends to its stockholders during the year.
-Read the information about Bartlett Industries. The company's dividends for the year:

• A) reduce the amount of capital stock reported by the company.
• B) are part of Bartlett Industries' operating costs.
• C) are reported on the statement of retained earnings.
• D) are an expense of Bartlett Industries.

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Definitions:

Legal Detriment

The loss or disadvantage that a party agrees to suffer within a contractual agreement which gives value to the contract.

Doctrine of Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another if the latter has relied on that promise to their detriment.

Charitable Subscriptions

Commitments made by individuals or organizations to donate money to charities, typically on a recurring basis.

Banker's Association

An organization that represents the interests of banks and financial institutions, providing advocacy, information, and guidelines.