Duke Corporation Reports the Following Components of Stockholders' Equity on December

question 51

Multiple Choice

Duke Corporation reports the following components of stockholders' equity on December 31,2010.
$\begin{array}{lr} \text {Common stock- \( \$ 25 \) par value, 100,000 shares authorized, 45,000 shares issued}\\ \text { and outstandino}&\$1,125,000\\ \text { Paid-in capital in excess of par value, common stock } & 60,000 \\ \text { Retained earnings } & 460,000 \\ \text { Total stockholders' equity } & \$ 1,645,000 \\\end{array}$

In year 2011, the following transactions affected its stockholders' equity accounts.
Jan. 1 Purchased 4,500 shares of its own stock at $\$ 27$ cash per share.
Jan. 5 Directors declared a $\$ 3$ per share cash dividend payable on Feb. 28 to the Feb. stockholders of record.

Feb. 28 Paid the dividend declared on January 5
Mar. 3 Sold 1,000 shares of treasury stock for $\$ 28$ per share
May 25 Sold 1,000 shares of treasury stock for $\$ 16$ per share

What is the amount in the Retained Earnings account immediately after the May 25^th sale?

• A)$460,000
• B)$328,500
• C)$444,000
• D)$433,000
• E)$338,500

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Definitions:

Mobile Phone Store

A retail shop that specializes in selling mobile phones and related accessories.

Joint Probability Distribution

Describes the probability of two or more events occurring at the same time and the relationship between them.

Probability Distribution

A mathematical description of outcomes in a statistical experiment, detailing how probabilities are distributed across the various possible outcomes.

Mobile Phone Store

A store focused on selling mobile phones, accessories, and related services.