Colonial Furniture's Net Profits Before Taxes for 2002 Totaled $354,000

question 133

Essay

Colonial Furniture's net profits before taxes for 2002 totaled $354,000. The company's total retained earnings were $338,000 for 2004 year end and $389,000 for 2005 year end. Colonial is subject to a 26 percent tax rate. How large was the cash dividend declared by Colonial Furniture in 2005?

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Definitions:

Marcia's Theory

A psychological theory by James Marcia that categorizes an individual's identity development during adolescence into four statuses based on exploration and commitment.

Commitment

A pledge or promise to do something, often requiring dedication and perseverance, in personal or professional contexts.

Preconventional Level

A stage in Kohlberg's theory of moral development, where an individual's moral reasoning is based primarily on the consequences of actions and on receiving rewards or avoiding punishment.

Moral Development

The method by which people cultivate appropriate attitudes and actions towards others in a community, in accordance with social and cultural standards, regulations, and legislation.