A Company Has 5,000 Shares of $1 Par Value Common

question 150

Multiple Choice

A company has 5,000 shares of $1 par value common stock and 6,000 shares of 2%,$98 par,noncumulative preferred stock outstanding.The balance in Retained Earnings at the beginning of the year was $750,000.Net income for the current year was $400,000.If the company paid a dividend of $3 per share on its common stock,what is the balance in Retained Earnings at the end of the year?

• A)$1,123,240
• B)$1,135,000
• C)$1,150,000
• D)$735,000
• E)$723,240

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Definitions:

Walumbwa

A reference to Fred O. Walumbwa, a researcher known for his work on authentic leadership and related organizational behavior topics.

Authentic Leadership

A leadership style in which the leader is genuine and transparent with followers, acting in alignment with their own values and beliefs.

Interpersonal Definition

Pertains to the relationships or communication between two or more people.

Authentic Leadership

A leadership style that emphasizes the genuineness and integrity of the leader, focusing on transparency, ethics, and positive values.