Reference no: EM132796383

Moorman Corporation reports the following information:

Correction of understatement of depreciation expense in prior years, net of tax $ 430,000

Dividends declared 320,000

Net income 1,000,000

Retained earnings, 1/1/10, as reported 2,000,000

Problem 1: Moorman should report retained earnings, 31/12/10, as adjusted at

Select one:

a. $3,110,000

b. $2,250,000

c. $3,430,000

d. $1,820,000

Problem 2: if the beginning balance of the share capital for the year was $100,000 and share premium was $30,000. during the year the firm issues 10,000 $5 par value for $7 each. the balance at the end of the year for share premium is

Select one:

a. $170,000

b. $100,000

c. $150,000

d. $50,000