FastForward Has Beginning Equity of $257,000,net Income of $51,000,dividends of $40,000,and

question 145

Multiple Choice

FastForward has beginning equity of $257,000,net income of $51,000,dividends of $40,000,and investments by owners in exchange for stock of $6,000.Its ending equity is:

• A)$223,000
• B)$240,000
• C)$268,000
• D)$274,000
• E)$208,000

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Definitions:

Dividends Declared

Profits announced by a company's board of directors to be distributed among shareholders.

Legal Capital

The minimum amount of equity that a company must maintain to protect creditors, often required by law.

Share Capital

The total amount of money raised by a company through the sale of shares to shareholders; represents the equity funding of the business.

Stock Dividends

A form of dividend paid by a company to its shareholders in the form of additional shares, rather than cash.