As of December 31, 2021, Ameren Corp reported the following: Cash dividends payable $ 22,000 Treasury stock 620,000 Paid-in capital—share repurchase 22,000 Common stock and other paid-in capital accounts 4,200,000 Retained earnings 3,200,000 During 2022, half of the treasury stock was resold for $244,000; net income was $620,000; cash dividends declared were $1,520,000; and stock dividends declared were $520,000.
As of December 31, 2021, Ameren Corp reported the following: Cash dividends payable $ 22,000 Treasury stock 620,000 Paid-in capital—share repurchase 22,000 Common stock and other paid-in capital accounts 4,200,000 Retained earnings 3,200,000 During 2022, half of the treasury stock was resold for $244,000; net income was $620,000; cash dividends declared were $1,520,000; and stock dividends declared were $520,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
As of December 31, 2021, Ameren Corp reported the following:
| Cash dividends payable | $ | 22,000 | |
| 620,000 | |||
| Paid-in capital—share repurchase | 22,000 | ||
| Common stock and other paid-in capital accounts | 4,200,000 | ||
| 3,200,000 | |||
During 2022, half of the treasury stock was resold for $244,000; net income was $620,000; cash dividends declared were $1,520,000; and stock dividends declared were $520,000.
The 2022 sale of half of the treasury stock would:
Multiple Choice
-
Reduce income before tax by $66,000
-
Increase total shareholders' equity by $310,000
-
Reduce retained earnings by $44,000
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Reduce retained earnings by $66,000
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