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Storm Corporation reported shareholders' equity on its balance sheet at December 31, 2014, as follows: Common shares, 20, 000 shares outstanding: 200, 000 Contributed
Storm Corporation reported shareholders' equity on its balance sheet at December 31, 2014, as follows: Common shares, 20, 000 shares outstanding: 200, 000 Contributed capital from the retirement of common shares: 100, 000 Retained earnings: 200, 000. In 2015, Storm earned income of $25, 000, declared cash dividends of $15, 000, and retired 2, 000 shares of its outstanding stock for $20 per share. At the end of 2015, Storm's contributed capital from the retirement of common shares and retained earnings should have the following balances: Contributed Capital: $90, 000 Retained Earnings: $200, 000 Contributed Capital: $100, 000 Retained Earnings: $110, 000 Contributed Capital: $80, 000 Retained Earnings: $210, 000 Contributed Capital: -0- Retained Earnings: $210, 000
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