The Michael Company's stockholders' equity accounts have the following balances as of December 31, 2016: Common stock, $20 par (25,000 shares issued of which ? 2,000 are being held as treasury stock) $ 500,000 Additional paid-in capital 750,000 Retained earnings 2,250,000 ? $3,500,000 Less: Treasury stock (2,000 shares at cost) (120,000) ? Total stockholders' equity $3,380,000 ? On
January 2, 2017, the board of directors of Michael declared a 10% stock dividend to be distributed on February 15, 2017. The market price of Michael Company's common stock was $75 per share on January 2, 2017. On the date of declaration, the retained earnings account should be decreased by
A) zero; only a memorandum entry is required.
B) $50,000.
C) $172,500.
D) $187,500.
C
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Answer the following statements true (T) or false (F)
1. The relationship between the firm and its suppliers is solely commercial and financially based. 2. The customer-firm relationship is based on ethical principles as well as commercial criteria. 3. The common goal of most NGO campaigns is to use customer and public pressure to force the corporation to adjust its strategic focus. 4. Global CSR incudes aspects of economic responsibility, legal responsibility, ethical responsibility, and global philanthropic responsibility. 5. Placing the firm’s support toward a single philanthropic cause via public relations or advertising is not strategic philanthropy. In fact, this “cause-related” marketing can backfire and lead to mistrust and suspicion about the true motives of the firm.
George is a farmer who belongs to an organization in which the farmers are owners and operators of the business. George belongs to a/an:
a. cooperative b. nonprofit corporation c. limited liability company d. partnership e. syndicate
UCC Article 9 defines a secondary obligor as being a consignee
Indicate whether the statement is true or false
Income-shifting transactions occur more frequently between related parties than between unrelated parties.
Answer the following statement true (T) or false (F)