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Bingel [31]
3 years ago
6

ABC had the following net income (loss) the first three years of operation: $7,000, ($1,600), and $3,600. If the Retained Earnin

gs balance at the end of year three is $1,000, what was the total amount of dividends paid over these three years?
Business
1 answer:
MA_775_DIABLO [31]3 years ago
6 0

Answer:

$8,000

Explanation:

As we know that

Ending balance of retained earnings = Beginning balance of retained earnings + net income - dividend paid

where,

Ending balance of retained earnings = $1,000

Beginning retained earning we assume zero

And, the net income for three years is

= $7,000 - $1,600 + $3,600

= $9,000

So, the dividend amount is

= $9,000 - $1,000

= $8,000

We simply applied the above formula

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FASB ASC 835-20-15-8

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Answer:

C) has no effect on Carr's earnings and profits for federal income tax purposes.

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4 0
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If the supply of a product increases, then we would expect equilibrium pricea.to increase and equilibrium quantity to decrease.
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Answer:

The correct answer is option d.

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