Moore Industries Moore Industries Began Operations on January 2, 2017, with an with an Investment

question 19

Multiple Choice

Moore Industries
Moore Industries began operations on January 2, 2017, with an investment of $50,000 by each of its two stockholders. Net income for its first year of business was $240,000. Moore Industries paid a total of $100,000 in dividends to its stockholders during the year.



-Read the information about Moore Industries.What is the company's retained earnings balance at December 31,2017?

• A)$140,000
• B)$190,000
• C)$240,000
• D)$340,000

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Definitions:

Sole Proprietorships

A business structure where a single individual owns, manages, and is solely responsible for all aspects of the business, including liabilities.

Unlimited Liability

The potential for an owner to lose more than has been invested in a business.

Double Taxation

A situation in which the same income is taxed twice; this often occurs with corporate income taxes where earnings are taxed at the corporate level and again when distributed as dividends to shareholders.

Start-Up Investment

Start-up investment refers to the initial capital required to start a new business, including costs for product development, market research, and operational expenses.