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tia_tia [17]
3 years ago
14

An increase in common stock would be reflected in the statement of stockholders' equity. Select one: True False

Business
1 answer:
xxMikexx [17]3 years ago
8 0

Answer:

The answer is true.

Explanation:

And increase or decrease in common stock or shareholders' equity is shown under statement of stockholders' equity.

It tells us the changes that happened from the beginning of the year till year ending.

It tells us how retained earnings decrease or increase, the dividend paid for the year, changes in common equity.

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Pre tax financial income                                $4,800

Add: Non deductible business meal            $780

Less: Tax exempt interest                            -$2,375

Less: Book tax difference in depreciation  -$16,800

of building and Furniture & fixtures

Add: Accured litigation expenses                 <u>$16,000</u>

Taxable Income                                              <u>$2,405</u>

Provision for income tax Expense

Current Tax (21% of $2,405)                      $505

Deferred tax liability                                   $3,528

Deferred tax asset                                     -<u>$3,360</u>

Total Provision for income tax expense  <u>$673</u>

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Computation of book net income after tax

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Book net income before taxes                   $4,800

Less: Provision for income tax expense   -<u>$673</u>

Net Income after tax                                   <u>$4,127</u>

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