A stock dividend indicates
a. a permanent commitment of assets generated by reinvested earnings.
b. an increase to total owners' equity.
c. an attempt to shift the control of the company by diluting ownership.
d. a transfer of corporate assets to shareholders without using cash.
e. a temporary commitment of assets generated by reinvested earnings.
A
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Indicate whether the statement is true or false
In terms of debits and credits, which types of accounts have the same (debit or credit) normal balances?
A) dividends, expenses, assets B) assets, capital stock, revenues C) retained earnings, dividends, liabilities D) expenses, liabilities, capital stock
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Answer the following statement true (T) or false (F)
Rotan Company purchased a van on January 1, 2018, for $810,000. Estimated life of the van was five years, and its estimated residual value was $98,000. Rotan uses the straight-line method of depreciation. At the beginning of 2020, the company revised the total estimated life of the asset from five years to six years. The estimated residual value remained the same as estimated earlier. Calculate the depreciation expense for 2020.
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