Leslie Printing Has Net Income of $26,310 for the Year

question 23

Multiple Choice

Leslie Printing has net income of $26,310 for the year.At the beginning of the year, the firm had common stock of $55,000, paid-in surplus of $11,200, and retained earnings of $48,420.At the end of the year, the firm had total equity of $142,430.The firm paid dividends of $32,500.What is the amount of the net new equity raised during the year?

• A)$34,000
• B)$42,500
• C)$25,000
• D)$21,500
• E)$0

---

Definitions:

W-9 Forms

A request for taxpayer identification number and certification, used in the United States to provide information to entities that pay you income.

Penalty

A fine or charge levied by the IRS for failure to comply with tax laws, such as late filing or underpayment of taxes.

Federal Tax Withholding

The portion of an employee's wages removed by the employer and sent directly to the government as partial payment of income tax.

FICA Withholding

The process by which employers withhold social security and Medicare taxes from their employees' paychecks, contributing to the FICA taxes owed.