As of December 31, 2018, Warner Corporation reported the following: Dividends payable Treasury stock Paid-in capital-share...

   

Transcribed Image Text:

As of December 31, 2018, Warner Corporation reported the following: Dividends payable Treasury stock Paid-in capital-share repurchase other paid-in capital accounts Retained earnings Multiple Choice Reduce retained earnings by $114.000 During 2019, half of the treasury stock was resold for $276,000; net Income was $780,000; cash dividends declared were $1,680,000; and stock dividends declared were $680,000. The 2019 sale of half of the treasury stock would: Increase total shareholders equity by $390.000 Reduce retained earnings by 576.000 $ Reduce income before tax oy 5114.000 38,000 780,000 38,000 5,800,000 4,800,000 As of December 31, 2018, Warner Corporation reported the following: Dividends payable Treasury stock Paid-in capital-share repurchase other paid-in capital accounts Retained earnings Multiple Choice Reduce retained earnings by $114.000 During 2019, half of the treasury stock was resold for $276,000; net Income was $780,000; cash dividends declared were $1,680,000; and stock dividends declared were $680,000. The 2019 sale of half of the treasury stock would: Increase total shareholders equity by $390.000 Reduce retained earnings by 576.000 $ Reduce income before tax oy 5114.000 38,000 780,000 38,000 5,800,000 4,800,000

Answer rating: 100% (QA)

Correct Answer Option 3 Reduce Retained Earnings by 76000 A Treasury ... View the full answer