Superior Has Provided the Following Information for Its Recent Year

question 4

Multiple Choice

Superior has provided the following information for its recent year of operation:
The common stock account balance at the beginning of the year was $20,000 and the year-end balance was $25,000.
The additional paid-in capital account balance increased $2,500 during the year.
The retained earnings balance at the beginning of the year was $75,000 and the year-end balance was $91,000.
Net income was $26,000.
How much did Superior sell its common stock for during the year?

• A)$5,000.
• B)$2,500.
• C)$7,500.
• D)$25,000.

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Definitions:

Return to Equity

The amount of net income returned as a percentage of shareholders equity.

Operating Income

Income generated from regular business operations, excluding expenses such as taxes and interest payments.

Selected Accounts

Specific financial accounts chosen for review or analysis due to their relevance or importance in a particular context.

Federal Income Taxes

Taxes levied by the U.S. government on the annual earnings of individuals, corporations, trusts, and other legal entities.