A Company Has 3,000 Shares of $2 Par Value Common

question 76

Multiple Choice

A company has 3,000 shares of $2 par value common stock and 1,500 shares of 8%,$150 par,non-cumulative preferred stock outstanding.The balance in Retained Earnings at the beginning of the year was $400,000.The Net Loss for the current year was $30,000.If the company paid a dividend of $1 per share on its common stock,what is the balance in Retained Earnings at the end of the year?

• A)$349,000
• B)$365,800
• C)$451,000
• D)$400,000
• E)$409,000

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Definitions:

Matched Pairs

A study design where subjects are paired based on certain criteria, making them comparable, and then treated differently to examine effects.

Independent Samples

Two or more groups of samples that are collected from independent populations, and where the selection of a sample from one population does not influence the selection from another.

Significance Test

A statistical test used to determine if the observed differences between two or more groups are statistically significant.

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