The net income of Edwards Corporation amounted to $73,000 for this year. The beginning balance of stockholders' equity was $30,000 and the ending balance was $70,000. The company issued no common stock during the year
What was the amount of dividends distributed during the year?
A) $70,000
B) $33,000
C) $143,000
D) $30,000
B .Stockholders' equity, beginning balance $30,000
Add:
Stock issued during the year 0
Net income 73,000
Less: Stockholders' equity, ending balance (70,000 )
Dividends $33,000
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a. The stock exchange b. Brandnew Company's investors c. The SEC d. Brandnew Company's board of directors
Roberta Warner and Sally Roger formed the Acme Corporation on October 1, 2016. On the same date Warner paid $75,000 cash to Acme for 750 shares of its common stock. Simultaneously, Roger received 100 shares of Acme's common stock for services rendered. How much should Roger include as taxable income for 2016, and what will be the basis of her stock?
a. $0 $0 b. $10,000 $10,000 c. $0 $10,000 d. $10,000 $0