On June 30,2018,Dakota,Inc

question 214

Multiple Choice

On June 30,2018,Dakota,Inc.showed the following data on the equity section of their balance sheet:

On July 1,2018,the company declared and distributed a 11% stock dividend.The market value of the stock at that time was $20 per share.As a result of this stock dividend,what is the balance of Retained Earnings?

• A)$770,580
• B)$951,000
• C)$981,780
• D)$621,200

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Definitions:

Horizontal Restraint

involves agreements among competitors operating at the same level of the market or supply chain to limit competition or manipulate market conditions.

Trade

The exchange of goods, services, or both between two or more parties, either within a country or internationally.

Price Fixing

An illegal practice where competing companies agree on selling prices of their products or services, rather than allowing market forces to set them.

Price Discrimination

A practice of charging different prices to different customers for the same product or service, where such differences are not justified by differences in cost.