Use the Following Information to Calculate Cash Received from Dividends

question 30

Multiple Choice

Use the following information to calculate cash received from dividends:
$$\begin{array} {|l | r| } \hline \text { Dividends revenuse } & \$ 29,800 \\\hline \text { Dividends receivable, January 1 } & 2,600 \\\hline \text { Dividends receivable, December } 31 & 3,400 \\\hline\end{array}$$

• A) $26,400
• B) $29,000
• C) $29,800
• D) $30,600
• E) $32,400

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Definitions:

Units-Of-Activity

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces or hours it is used.

Salvage Value

An asset's projected financial value at the end of its viability period.

Depreciation Expense

An accounting method for allocating the cost of a tangible asset over its useful life, representing the asset's consumption, wear and tear, or obsolescence.

Straight-Line Method

The straight-line method is a depreciation technique that allocates an equal amount of depreciation expense for a fixed asset to each year of its useful life.