Zebra Inc. produced net income of $100,000 in 2019. They paid out half their net income in
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Question:
Zebra Inc. produced net income of $100,000 in 2019. They paid out half their net income in dividends and the other half was reinvested back into the company. During the year, they incurred $10,000 in interest expense. How did these transactions impact Zebra’s income for 2019?
- Income is reduced $10,000 for interest.
- Income is reduced $50,000 for dividends
- Income is reduced $60,000 for interest and dividends
- Income is not impacted.
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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