Assume that Shack Company's paid- in capital at the beginning of the period was $475,000. Shack Company's total revenues and total expenses were $870,000 and $550,000, respectively. A dividend of $70,000 was declared and paid to shareholders. Shack Company's ending paid- in capital is:
A) $405,000
B) $795,000
C) $475,000
D) $725,000

Question

Quizplus · Accepted Answer

Paid-in capital does not change with revenues, expenses, or dividends. It remains at $475,000.

Assume That Shack Company's Paid- in Capital at the Beginning