10 Mango Ltd. has 100,000 common shares outstanding and has a policy of paying a $1.30 annual dividend for each of these shares. Mango has an income tax rate of 35%, and its retained earnings statement for 2020 reported a closing balance of $1,452,000. Assuming an opening retained earnings balance of zero, dividend payments according to its usual policy, and no other adjustments, Mango's 2020 net income was ______________ . Select one: a. $1,452,000. b. $1,536,500. c. $2,364,846. d. $1,582,000.

10 Mango Ltd. has 100,000 common shares outstanding and has a policy of paying a $1.30 annual dividend for each of these shares. Mango has an income tax rate of 35%, and its retained earnings statement for 2020 reported a closing balance of $1,452,000. Assuming an opening retained earnings balance of zero, dividend payments according to its usual policy, and no other adjustments, Mango's 2020 net income was ______________ . Select one: a. $1,452,000. b. $1,536,500. c. $2,364,846. d. $1,582,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...

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