Superior Has Provided the Following Information for Its Recent Year

question 100

Multiple Choice

Superior has provided the following information for its recent year of operation: The common stock account balance at the beginning of the year was $20,000 and the year-end balance was $25,000.
The additional paid-in capital account balance increased $2,500 during the year.
The retained earnings balance at the beginning of the year was $75,000 and the year-end balance was $91,000.
Net income was $26,000.
How much were Superior's dividend declarations during its recent year of operation?

• A)$10,000.
• B)$42,000.
• C)$26,000.
• D)The dividend declarations cannot be determined from the information provideD.Ending retained earnings ($91,000) = Beginning retained earnings ($75,000) + Net income ($26,000) - Dividends declared ($10,000).

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Definitions:

Loans

Sums of money borrowed that are expected to be paid back with interest by the borrower over a specified period of time.

Discount Rate

The interest rate charged by central banks on loans they give to commercial banks and other financial institutions.

Fed

The Federal Reserve System, which is the central banking system of the United States, responsible for monetary policy.

Loans

Money borrowed that is expected to be paid back with interest.