Begin with Information Provided,but Assume Instead That Saucy Declared a Stock

question 24

Multiple Choice

Begin with information provided,but assume instead that Saucy declared a stock dividend of 3,000 shares on its $5 par value common stock.The investment elimination entry required to prepare a consolidated balance sheet immediately after the stock dividend is issued will include a debit to Additional Paid-In Capital for:

• A)$65,000.
• B)$95,000.
• C)$50,000.
• D)$110,000.

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Definitions:

Payback Period

The time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.

Cash Inflows

Money or other forms of financial assets that come into a company, contributing to its total revenue.

Outlay

The total amount of money spent on a particular project or purchase.

Payback Period

The length of time needed to recoup the initial cost of an investment.