A Corporation Reported Net Income of $60,000, Declared and Paid

question 87

Multiple Choice

A corporation reported net income of $60,000, declared and paid cash dividends of $80,000, and issued 3,000 shares of $2 par common stock at $15 per share during the year. What total effects would these transactions have on the following stockholders' equity accounts? Retained Earnings Common Stock

• A)increase increase
• B)increase decrease
• C)decrease decrease
• D)decrease increase

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Definitions:

Sherman Act

A foundational antitrust law in the United States aimed at prohibiting monopolistic business practices and ensuring fair competition.

Market Leader

A company with the highest sales or market share in a particular market.

Reciprocal Dealing Agreement

An agreement between two parties where each agrees to purchase goods or services from the other, often used to strengthen business relationships.

Exclusive Dealing

An arrangement where a retailer or distributor is restricted to purchasing or selling the products of one supplier.