Following Is the Shareholders' Equity Section of the Balance Sheet

question 49

Multiple Choice

Following is the shareholders' equity section of the balance sheet of the Everslim Company: Share capital:
Preferred shares, 420,000 shares authorized,
Common shares, 100,000 shares authorized,
The preferred shares are currently selling for $102.25 per share and the common shares are currently selling for $11.50 per share.
The total share capital after the distribution of a $66,000 dividend is:

• A) $400,000
• B) $150,000
• C) $550,000
• D) $817,000

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Definitions:

Personal Property

Assets that are movable and not permanently attached to one location, such as furniture or vehicles.

Real Property

Land and anything permanently affixed to it, such as buildings, fences, and those things attached to the buildings.

Consideration

Consideration in law refers to something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Gift

A voluntary transfer of property made without consideration, past or present.