Table 14-6
Following Is the Shareholders' Equity Section of the Balance

question 40

Multiple Choice

Table 14-6
Following is the shareholders' equity section of the balance sheet of Thomson Corporation:
$$\begin{array} { |l | r | } \hline \text { Contributed capital } & \\\hline \text { Preferred shares, } \$ 6 \text {, cumulative, } 25,000 \text { shares } & \\\hline \text { authorized, } 7,000 \text { shares issued } & \$ 700,000 \\\hline \text { Common shares, } 1,000,000 \text { shares authorized, } 500,000 & \\\hline \text { shares issued } & 2,500,000 \\\hline \text { Total contributed capital } & 3,200,000 \\\hline \text { Retained earnings } & \$ 90,000 \\\hline \text { Total shareholders' equity } & \$ 4,190,000 \\\hline\end{array}$$ The preferred shares are currently selling for $89.50 per share and the common shares are currently selling for $12.50 per share.
-Refer to Table 14-6.The total shareholders' equity after the distribution of a 5% common stock dividend is:

• A) $4,315,000
• B) $3,877,500
• C) $4,190,000
• D) $4,502,500

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Definitions:

Even-Tempered

Having a calm and steady disposition not easily provoked to anger or emotional outbreaks.

Daily Routine

The sequence of activities regularly followed by an individual on a day-to-day basis.

Securely Attached

A term used in psychology to describe individuals who have healthy, trust-based relationships, often stemming from nurturing caregiving in early life.

Basic Dimensions

Fundamental aspects or quantities that define the structure, form, or operation of an entity or system.