On January 1,2010 Miller Corporation Had Retained Earnings of $8,000,000

question 111

Multiple Choice

On January 1,2010 Miller Corporation had retained earnings of $8,000,000.During 2010,Miller reported net income of $1,500,000,declared dividends of $500,000,and issued stock for $1,000,000.What were Miller's retained earnings on December 31,2010?

• A)$7,000,000
• B)$9,500,000
• C)$9,000,000
• D)$7,500,000

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Definitions:

Outstanding Shares

The total number of shares of stock that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Outstanding Stock

Issued stock that has not been reacquired but remains in the hands of stockholders.

Authorized

Refers to something that has been officially approved or given permission.

Issued

Refers to stocks or bonds that have been distributed to investors but does not relate to their release by a company or government.