Tantramar Corporation has the following shareholders equity on July 31, 2020: Assume that on June 15, 2021, Tantramar paid the preferred dividend for the current year (there were no dividends in arrears) and paid a dividend of $ 2 to each common shareholder. The company earned $ 45,000 in profit during 2021. The July 31, 2021 financial statements will show an ending balance in retained earnings of
A) $ 500,000.
B) $ 545,000.
C) $ 475,000.
D) $ 430,000.

Question

Tantramar Corporation has the following shareholders equity on July 31, 2020:  Assume that on June 15, 2021, Tantramar paid the preferred dividend for the current year (there were no dividends in arrears) and paid a dividend of $ 2 to each common shareholder. The company earned $ 45,000 in profit during 2021. The July 31, 2021 financial statements will show an ending balance in retained earnings of
A) $ 500,000. 
B) $ 545,000. 
C) $ 475,000. 
D) $ 430,000.

Quizplus · Accepted Answer

The Answer of Tantramar Corporation has the following shareholders equity on July 31, 2020:  Assume that on June 15, 2021, Tantramar paid the preferred dividend for the current year (there were no dividends in arrears) and paid a dividend of $ 2 to each common shareholder. The company earned $ 45,000 in profit during 2021. The July 31, 2021 financial statements will show an ending balance in retained earnings of
A) $ 500,000. 
B) $ 545,000. 
C) $ 475,000. 
D) $ 430,000.

Tantramar Corporation Has the Following Shareholders Equity on July 31