Based on the data above, the total effect of dividends on Retained Earnings willbe:O A decrease by $388,500A decrease by $105,000O A decrease by $555,000O None of the aboveer 31.2020 was: Presented below is X Corporation's selected data for 2020:Retained earnings January 1.2020Pretax IncomeStock dividends declaredDuring the year, the company changed its inventorymethod from FIFO to LIFO which had resulted in a$6,000,0002,000,000330,00040.000pretax increase in income by:Cash dividends de claredDuring 2020. the company discovered that the 2019depreciation expense were overstated by a net of taxam ount of:Tax rate225.00070.00030%CIEO to

When the dividend is paid the retained earnings are reduced by such amount. Cash dividend have…

Answered: Based on the data above, the total…

Based on the data above, the total effect of dividends on Retained Earnings will be: * OA decrease by $388,500 OA decrease by $105,000 A decrease by $555,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Based on the data above, the total effect of dividends on Retained Earnings will
be:
O A decrease by $388,500
A decrease by $105,000
O A decrease by $555,000
O None of the above
er 31.2020 was:

Presented below is X Corporation's selected data for 2020:
Retained earnings January 1.2020
Pretax Income
Stock dividends declared
During the year, the company changed its inventory
method from FIFO to LIFO which had resulted in a
$6,000,000
2,000,000
330,000
40.000
pretax increase in income by:
Cash dividends de clared
During 2020. the company discovered that the 2019
depreciation expense were overstated by a net of tax
am ount of:
Tax rate
225.000
70.000
30%
CIEO to

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