How Can We Use the Information from the Table Shown

question 25

Multiple Choice

How can we use the information from the table shown to compare the real value of the 1979 salary to that of the one earned in 2009?

• A) You can see that the salary has increased from $43,265 to $170,844.
• B) You need to put the 2009 salary into real 2009 terms to compare it to 1979.
• C) You need to put both salaries into real dollars in the same year for comparison.
• D) There is no real way to compare the two without more information.

---

Definitions:

Below Cost

Selling products or services at a price less than their original purchase or production cost.

Paid-in Capital

Funds raised by a company through the issuance of shares to investors, representing the money that shareholders have invested in the business beyond the initial value of the shares.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing corporation.

Retained Earnings

The accumulated net income of a company that has not been distributed to shareholders as dividends.