Asked by lyndsey holder on Jul 17, 2024
Verified
At the start of the year, Gershon, Inc. had total shareholders' equity = $12,000. If net income during the year was a $200 loss, dividends paid = $400, and $1,000 was raised from the sale of new stock, what is the end of year value for total shareholders' equity?
A) $10,060
B) $11,800
C) $12,400
D) $12,800
E) $13,200
Shareholders' Equity
The residual interest in the assets of a corporation after deducting liabilities, representing ownership equity.
Net Income
The total earnings of a company after all expenses and taxes have been deducted from total revenue, representing the company's profit.
Dividends Paid
The sum of money paid by a company to its shareholders out of its profits or reserves.
- Scrutinize the elements of equity held by shareholders and recognize the ways in which it may vary within a certain timeframe.
Verified Answer
Learning Objectives
- Scrutinize the elements of equity held by shareholders and recognize the ways in which it may vary within a certain timeframe.
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