At the beginning of 2008, M.R. Magoo Company had retained earnings of $100,000. During the year, M.R. Magoo reported net income of $50,000, sold treasury stock at a gain of $18,000, declared a cash dividend of $30,000, and declared and issued a small stock dividend of 1,500 shares ($10 par value) when the market value of the stock was $20 per share. The amount of retained earnings available for dividends at the end of 2008 was
A) $90,000.
B) $105,000.
C) $108,000.
D) $123,000.

Question

Quizplus · Accepted Answer

$100,000 + $50,000 - $30,000 - (1,500 × $20) = $90,000

At the Beginning of 2008, M