Duke Corporation Reports the Following Components of Stockholders' Equity on December

question 122

Multiple Choice

Duke Corporation reports the following components of stockholders' equity on December 31,2013: What is the amount in the Retained Earnings account immediately after the dividend on July 15?

• A)$264,750
• B)$392,500
• C)$460,000
• D)$338,500
• E)$470,000

---

Definitions:

Economies of Scale

The cost advantage experienced by a firm when it increases its level of output. The average costs per unit of output decrease with the scaling up of production.

Diamond-Mining Company

An entity engaged in the extraction of diamonds from the earth through mining operations.

Diseconomies Of Scale

The phenomenon where production costs per unit increase as a firm or production process increases in size, often due to inefficiencies.

Industry Demand Curve

A graphical representation of the total demand for the products or services provided by a specific industry at various prices.