The Balance in Retained Earnings at the Beginning of the Year

question 79

Multiple Choice

The balance in Retained Earnings at the beginning of the year was $950,000, and there were no dividends in arrears. Net income for 2009 was $980,000. What was the amount of dividend declared on each share of common stock during 2009?

• A) $2.50.
• B) $2.08.
• C) $2.00.
• D) $2.68.

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Definitions:

Salvage Value

The estimated amount that an asset is expected to realize at the end of its useful life.

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of a tangible asset over its useful life evenly.

Gross Depreciable

The total cost or value of an asset that is subject to depreciation over its useful life.

AICPA Survey

A survey conducted by the American Institute of Certified Public Accountants that gathers information on various topics related to accounting practices, trends, and professional issues.