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ABC Inc. was incorporated two years ago by issuing 5,000 shares of common stock at $400 each and borrowing $240,000 from a bank on a long-term note. Last year, ABC reported net income of $40,000 and paid a cash dividend of $1,800. Last year, the company also borrowed an additional $320,000 from the bank. What was the total assets on ABC's balance sheet at the end of the year last year? a. None of these. b. $2,600,000 c. $2,558,200 d. $2,598,200

ABC Inc. was incorporated two years ago by issuing 5,000 shares of common stock at $400 each and borrowing $240,000 from a bank on a long-term note. Last year, ABC reported net income of $40,000 and paid a cash dividend of $1,800. Last year, the company also borrowed an additional $320,000 from the bank. What was the total assets on ABC's balance sheet at the end of the year last year? a. None of these. b. $2,600,000 c. $2,558,200 d. $2,598,200

SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 1BCRQ
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ABC Inc. was incorporated two years ago by issuing 5,000 shares of common stock at $400 each and borrowing $240,000 from a bank on a long-term note. Last year, ABC reported net income of $40,000 and paid a cash dividend of $1,800. Last year, the company also borrowed an additional $320,000 from the bank. What was the total assets on ABC's balance sheet at the end of the year last year? a. None of these. b. $2,600,000 c. $2,558,200 d. $2,598,200
Transcribed Image Text:ABC Inc. was incorporated two years ago by issuing 5,000 shares of common stock at $400 each and borrowing $240,000 from a bank on a long-term note. Last year, ABC reported net income of $40,000 and paid a cash dividend of $1,800. Last year, the company also borrowed an additional $320,000 from the bank. What was the total assets on ABC's balance sheet at the end of the year last year? a. None of these. b. $2,600,000 c. $2,558,200 d. $2,598,200
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