1. A new corporation ended its first year of operations with assets of $115,000, liabilities of $75,000, andcontributed capital in common shares of $10,000. What was the corporation's net income for the year,assuming $15,000 in dividends were paid?A) $25,000B) $35,000C) $40,000D) $45,000E) None of the above.2. Xtreme Sports has 1000 common shares outstanding on January 1, 2022. Early in the year, the shareswere reverse split 1 for 4, and near the end of the year a 20% share dividend was distributed. Thenumber of shares outstanding after the dividend should be 300.A) True.B) False.3. The date of record is the date the directors vote to pay a dividend to shareholders.A) TrueB) False4. Corporations differ from proprietorships and partnerships in that corporations pay income taxes and canclaim them as an expense, while proprietorships and partnerships don't.A) TrueB) FalseI5. A share dividend reduces a corporation's assets and shareholders' equity.A) TrueB) False

Net income is the amount of profit which is earned by the business during the particular period and…

1. A new corporation ended its first year of operations with assets of $115,000, liabilities of $75,000, and contributed capital in common shares of $10,000. What was the corporation's net income for the year, assuming $15,000 in dividends were paid? A) $25,000 B) $35,000 C) $40,000 D) $45,000 E) None of the above.

1. A new corporation ended its first year of operations with assets of $115,000, liabilities of $75,000, and contributed capital in common shares of $10,000. What was the corporation's net income for the year, assuming $15,000 in dividends were paid? A) $25,000 B) $35,000 C) $40,000 D) $45,000 E) None of the above.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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