QUESTION 1 of 10: A corporation sold 100,000 shares of stock when the company was formed at $20 per share. After the first year

Question

2 years ago

14

QUESTION 1 of 10: A corporation sold 100,000 shares of stock when the company was formed at $20 per share. After the first year

of
operations the company made a profit of $25,000 and distributed dividends of $.10 per share. What was the total value of stockholder's equity
at the end of the year?

Mathematics

1 answer:

tiny-mole [99] · Answer 1 · 2022-04-05T05:39:26+03:00

tiny-mole [99]2 years ago

3 0

Answer:

option b. $2,000,000.

Step-by-step explanation:Explanation:

Increase in stockholders equity = Number of shares sold * Selling price per share

Increase in stockholders equity = 100,000 shares * $20

Increase in stockholders equity = $2,000,000