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aleksley [76]
3 years ago
7

The following selected amounts are available for Thomas Company.Retained earnings (beginning) $2,500Net loss 200Cash dividends d

eclared 200Stock dividends declared 200What is its ending Retained Earnings balance?a. $2,200.b. $2,300.c. $1,900.d. $2,100.
Business
1 answer:
AfilCa [17]3 years ago
4 0

Answer:

c. $1,900

Explanation:

As for the information provided, we have:

Retained Earnings opening balance = $2,500

Current year loss = $200

Balance of retained earnings after this = $2,500 - $200 = $2,300

Now, dividends are provided which shall be paid from retained earnings only.

Cash dividends are the one paid in cash.

Stock dividends are the ones which are paid by issue extra shares from retained earnings.

Thus, both are deductible from retained earnings.

Therefore, closing balance of retained earnings = $2,300 - $200 - $200 = $1,900.

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Plum Corporation will begin operations on January 1. Earnings for the next five years are projected to be relatively stable at a
Paul [167]

Answer:

Plum Corporation

The best choice is:

B. Assume that Plum will distribute its after-tax earnings each year to its shareholders. Should Plum operate as a C corporation or an S Corporation?

Explanation:

a) Tax is the greatest difference existing between a C corporation and an S corporation.  With a C corporation, the earnings are taxed twice.  When the C corporation earns income, it is taxed as a corporation.  When it distributes the after-tax earnings, the owners are taxed again in income tax.  This does not happen with an S corporation.  The S corporation does not pay corporate tax, instead, its owners pay their individual income taxes because the corporation's incomes are passed through the members.

3 0
3 years ago
Marquis Company uses a weighted-average perpetual inventory system.
timama [110]

Answer:

The amount of the cost of goods sold for this sale is $98.4

Explanation:

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August 2, 22 units were purchased at $3 per unit,

Total cost = $3 x 22 = $66

Average cost per unit: $3

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August 29, 24 units were sold

Cost of goods sold = 24 x $4.1 = $98.4

8 0
3 years ago
The purpose of a financial intermediary is to help channel funds
Triss [41]

Answer:

a. from one banks to another

Explanation:

3 0
3 years ago
Contrary to recommendations by consumer credit counselors, most consumers don’t keep written track of their purchases, relying i
Viktor [21]

Answer:

mental budgeting

Explanation:

This is an example of mental budgeting because mental budget reduce the resistance that consumers feel when buying more than one item.

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so answer is mental budgeting

5 0
3 years ago
Lasseter Corporation has provided its contribution format income statement for August. The company produces and sells a single p
Margarita [4]

Answer:

$93,600

Explanation:

The computation of the total contribution margin is shown below:

Given that

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= $91,800 × 5,200 units ÷ 5,100 units

= $93,600

All other information which is given is not relevant. Hence, ignored it

5 0
3 years ago
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