On January 1,2011 Gucci Brothers Inc

question 4

Multiple Choice

On January 1,2011 Gucci Brothers Inc.had a $500,000 credit balance in retained earnings and $600,000 balance in contributed capital.During 2011,the company earned net income of $100,000,declared a dividend of $15,000,and issued additional stock for $25,000.What is total stockholders' equity on December 31,2011?

• A)$1,100,000
• B)$1,210,000
• C)$1,225,000
• D)$1,240,000

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Definitions:

Product Line

A group of related products marketed under a single brand name by the same company.

Product Life-cycle

A concept in marketing that describes the stages a new product goes through from introduction to growth, maturity, and decline.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end user.