Yellow Enterprises Reported the Following ($ in 000s) as of December

question 142

Multiple Choice

Yellow Enterprises reported the following ($ in 000s) as of December 31, 2018. All accounts have normal balances. During 2019 ($ in 000s) , net income was $9,000; 25% of the treasury stock was resold for $450; cash dividends declared were $600; cash dividends paid were $500.
- What ($ in 000s) was shareholders' equity as of December 31, 2018?

• A) $29,600.
• B) $35,600.
• C) $30,400.
• D) $28,600.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, offering limited liability to its shareholders.

Closely Held Corporations

Corporations in which there are relatively few shareholders; referred to as non-distributing corporations in some jurisdictions.

Annual Return

A yearly statement filed by businesses detailing important company information such as capital, membership, and accounts.

Pre-emptive Rights

Pre-emptive rights, in corporate law, are rights given to existing shareholders to purchase additional shares before they are offered to new potential shareholders, usually to maintain their proportional ownership in the company.