Use the Information Given Below to Answer the Following Questions

question 10

Multiple Choice

Use the information given below to answer the following questions:
During the year, Grasso Ltd sold 2000 items at $30 each. The cost price of the items was $22 each. Operating expenses totalled $7000 and income tax expense was $4000.
-If this were the first year of Grasso Ltd's operations,what is the maximum amount that could be paid out in dividends to shareholders?

• A) $5000
• B) $16 000
• C) $60 000
• D) $9000

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Definitions:

Outdoor Activity

Engagements or pursuits conducted in natural environments outside of indoor settings, often associated with recreation and physical exercise.

Body Piercings

The practice of puncturing or cutting a part of the human body, creating an opening in which jewelry may be worn.

Tattoos

Permanent markings on the skin made by inserting pigment into the upper layers of the skin to form a design.

Hepatitis

A group of infectious diseases that affect the liver, caused by different viruses designated by the letters A, B, C, D, and E.