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BlackZzzverrR [31]
3 years ago
8

In Q1 2018, CNA Companies reports the following transactions:

Business
1 answer:
kotegsom [21]3 years ago
4 0

Answer: B. ($11 million)

Explanation:

Out of the listed transactions there, these are the ones that can be taken out of Retained Earnings.

Loss on sale of equipment of $6 million

Preferred dividend of $2 million

Common dividend of $3 million

So calculating would be,

= - 6 - 2 - 3

= -$11 million

This means that Retained Earnings will reduce by -$11 million making option B correct.

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