Moretown, Inc had the following transactions in 2017, its first year of operations
• Issued 31,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $20.00 per share.
• Earned net income of $70,000.
• Paid no dividends.
At the end of 2017, what is total stockholders' equity?
A) $31,000
B) $690,000
C) $620,000
D) $70,000
B .B)
Common stock (31,000 x $20 ) $620,000
Net income $70,000
Total stockholders' equity $690,000
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In allocating variable costs to products,
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A) stabilize profit margins B) encourage brand loyalty C) reach peak sales levels D) compete on the basis of price E) maintain market share
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Fill in the blank(s) with the appropriate word(s).