At the Beginning of the Current Year,Elite Corporation Had 200,000

question 30

Multiple Choice

At the beginning of the current year,Elite Corporation had 200,000 shares of $1 par common stock outstanding and had retained earnings of $4,800,000.During the year,the company earned $1,675,000,declared a 10% stock dividend when the price of stock was $28 per share,and paid a year-end cash dividend of $3 per share.(The cash dividend was paid after the stock dividend had been distributed. ) What was Elite Corporation's retained earnings at the end of the year?

• A)$5,915,000
• B)$5,255,000
• C)$5,311,000
• D)$3,580,000

---

Definitions:

Momentary Maximization

The tendency of an organism to choose an option that provides immediate benefits, even if a different choice could yield a higher cumulative benefit over time.

Maximizing Law

A principle suggesting that individuals behave in ways that they believe will maximize their rewards and minimize their losses.

Matching Law

A principle in psychology and behavioral economics that states the proportion of responses directed towards an option matches the proportion of reinforcements obtained from that option.

Prefrontal Cortex

The prefrontal cortex is a part of the brain located at the front of the frontal lobes; it is involved in complex behaviors including planning, decision making, and moderating social behavior.