Creston Enterprises Has Common Stock with a Par Value of $5.During

question 217

Multiple Choice

Creston Enterprises has common stock with a par value of $5.During the current year,it declared and paid dividends of $20,000.It sold at $20 per share an additional 2,000 shares of stock that had not been previously issued.In addition,it had net income of $100,000 for the year.What is the amount of change to its stockholders' equity for the year?

• A)$140,000
• B)$90,000
• C)$110,000
• D)$120,000

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Definitions:

Cognitive Dissonance Theory

A theory proposing that people experience discomfort (dissonance) when their beliefs, knowledge, or behaviors are inconsistent, leading them to attempt to reduce the dissonance and restore harmony.

Social Identity Theory

Social Identity Theory explains how individuals derive part of their identity from the groups they belong to, influencing their behaviors and attitudes in intergroup contexts.

Cohesive

Characterized by unity and the tendency of a group or material to stick together.

Successive Stage Theory

A concept in development that suggests entities go through a series of distinct and chronological stages or phases as they evolve or progress.