A Corporation Declares a Dividend of

question 65

Multiple Choice

A corporation declares a dividend of $.75 per share on 12,500 shares of common stock. Which of the following would be included in the entry to record the declaration?

• A) Retained earnings would be debited for $9,375.
• B) Paid-in capital in excess of par would be credited for $9,375.
• C) Retained earnings would be credited for $9,375.
• D) Dividends payable would be debited for $9,375.

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Definitions:

Tax Wedge

The difference between the amount a buyer pays and the amount a seller receives for a good or service due to taxation.

Sellers

Individuals or entities that offer goods or services for sale in the market.

Excise Tax

A type of tax levied on specific goods, services, or activities, often aimed at discouraging undesirable behaviors or generating revenue.

Latte

A coffee drink made with espresso and steamed milk, often with a small amount of foam on top.