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Madrid Company has provided the following data (ignore income taxes):

Romashka [77]

Answer:

C.Retained earnings increased $33,900 during 2014.

Explanation:

Total expenses during the year=Revenue- net income

=77,500-33,900

=$43,600

Therefore, option A. is correct

Total Liabilities=Total assets-total equity

=217,000-123,000

=$94,000

Therefore, option B. is correct

The formula for calculating Retained earnings is given as follows:

Retained earnings at year end=Opening retained earnings+net income-dividend paid.

83,000=opening retained earnings+33,900-5,700

opening retained earnings=83,000-33,900+5,700

=54,800

Change in retained earnings=closing retained earnings-opening retained earnings

Change in retained earnings=83,000-54,800=28,200

Therefore, Option C. is not correct

Common stock at December 31, 2014=total equity-total retained earnings

=123,000-83,000

=$40,000

Therefore, Option D. is correct

Based on the above discussion the answer is C.Retained earnings increased $33,900 during 2014.

8 0

3 years ago

Read 2 more answers

Cowboy, Inc., an American corporation that produces cowboy hats contract with a manufacturing plant in France, Beret, Inc. The c

vodomira [7]

<h3>Answer: Neither. They will use International Law. </h3>

Explanation:

When companies from different countries get into a contract, it is quite desirable that they stipulate which country's laws that they will abide by should the need arise.

However, if this is not done, there is still a method of enforcing. When not specifically listed, contract between companies from different countries falls under a branch of Private International law which is International Contract Law which is synonymous with International Sales law.

This law falls under the jurisdiction of the United Nations Convention on Contracts for the International Sale of Goods (CISG) which came into effect in January 1988.

Both France and the United States of America have ratified the law and so Cowboy Hats is free to take legal action within this framework if they so please.

7 0

2 years ago

Sydney has worked for WillCo for the last 20 years. She just had her 60th birthday and is thinking about retirement. WillCo spon

Wittaler [7]

Answer: c. Sydney can diversify 50% of her WillCo stock.

Explanation:

Employee stock ownership plan (ESOP) is simply referred to as an employee benefit where the employees of a particular company are given ownership interest as long as some certain criteria are met.

Once the workers become qualified participants, they can diversify certain percentage of their stocks. From the 1st-5th year, a qualified participant is allowed to diversify about 25% of his or her stock account and about 50% in the 6th year.

Based on the explanation, since Sydney has worked for WillCo for the last 20 years, Sydney can diversify 50% of her WillCo stock.

5 0

2 years ago

James has a marginal tax rate of 24%. He suddenly realizes that he neglected to include a $7,000 tax deduction. How will this ov

Alex17521 [72]

Answer:

hmhgdmthde

Explanation:

7 0

3 years ago

Esther and Elizabeth are equal partners in the EE Partnership. The partners formed the partnership seven years ago by contributi

Ber [7]

Answer: Esther does not recognize any gain or loss on the distribution and her remaining basis in EE is $15,000

Explanation:

Base on the scenario been described in the question, repayment of liabilities is treated as a cash distribution. Esther's share of the debt reduction is Since this amount is lower than her outside basis ($40,000) she does not recognize a gain or loss.reduces her outside basis by the $25,000, which leaves her $15,000 of outside basis in EE afterthe debt repayment.

8 0

2 years ago