A Company Has 2,000 Shares of $1 Par Value Common

question 183

Multiple Choice

A company has 2,000 shares of $1 par value common stock and 200 shares of 5%,$110 par,noncumulative preferred stock outstanding.The balance in Retained Earnings at the beginning of the year was $500,000.Net income for the current year was $300,000.If the company paid a dividend of $2 per share on its common stock,what is the balance in Retained Earnings at the end of the year?

• A)$800,000
• B)$805,100
• C)$794,900
• D)$494,900
• E)$194,900

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Definitions:

Personality Traits

Enduring characteristics or qualities that define an individual’s patterns of thought, emotion, and behavior.

Genetic Predisposition

The increased likelihood of developing certain traits or disorders based on one's genetics.

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A process in which specific behaviors are identified, defined, measured, and changed using interventions based on principles of applied behavior analysis.

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Adverse responses or feedback to a particular stimulus, action, or event, often characterized by resistance or opposition.