Bruno's Has 7,000 Shares Outstanding with a Par Value of £1.00

question 29

Multiple Choice

Bruno's has 7,000 shares outstanding with a par value of £1.00 per share and a market value of £12 per share.The statement of financial position shows £7,000 in the ordinary equity account, £58,000
In the additional paid in capital account and £32,500 in the retained earnings account.The firm just
Announced a 50% (large) stock dividend.What is the value of the retained earnings account after
The dividend?

• A)£29,000
• B)£30,500
• C)£32,500
• D)£34,500
• E)£36,000

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Definitions:

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The condition of being legally accountable for actions that are classified as criminal offenses.

Illegal Tax Evasion

The unlawful act of not paying taxes that are legally owed by concealing income, inflating deductions, or using other illicit means.

Subpoenaed Documents

Documents that are required to be produced before a court or legal authority as part of a legal process, often compelled by a subpoena.

S Corporation

A type of corporation that meets specific Internal Revenue Code requirements, allowing profits to be passed directly to shareholders and avoid double taxation.