A Corporation Declares $25 Million in Net Income,$1 Million in Preferred

question 70

Multiple Choice

A corporation declares $25 million in net income,$1 million in preferred stock dividends,and $7 million in common stock dividends.By how much will shareholders' equity increase on the balance sheet?

• A) $17 million
• B) $18 million
• C) $19 million
• D) $25 million