Team Shirts,Inc.had the following balances on its balance sheet: During 2012,Team Shirts had revenues of $500,000 and expenses of $420,000.No new stock was issued.The amount of dividends for 2012 was ________.
A)$130,000
B)$50,000
C)$10,000
D)$80,000

Question

Team Shirts,Inc.had the following balances on its balance sheet:  During 2012,Team Shirts had revenues of $500,000 and expenses of $420,000.No new stock was issued.The amount of dividends for 2012 was ________.
A)$130,000 
B)$50,000 
C)$10,000 
D)$80,000

Quizplus · Accepted Answer

To calculate the amount of dividends, we need to find the net income for the year. Net income is calculated by subtracting expenses from revenues:

$500,000 - $420,000 = $80,000

Since no new stock was issued, this net income is available for distribution as dividends. Therefore, the amount of dividends for 2012 was $80,000. The correct answer is B.