Reference no: EM132530098

Question 1 : On February 22, Brett Corporation acquired 240 shares of its $4 par value common stock for $27 each. On March 15, the company resold 66 shares for $31 each. What is true of the entry for reselling the shares?

Multiple Choice

Option 1: Debit Treasury Stock $1,782

Option 2: Credit Cash $1,782

Option 3: Credit Treasury Stock $2,046

Option 4: Credit Additional Paid-in Capital $264

Question 2 : The ending Retained Earnings balance of Lambert Inc. increased by $2.5 million from the beginning of the year. The company's net income earned during the year is $7.5 million. What is the amount of dividends Lambert Inc. declared and paid?

Multiple Choice

Option 1: $2.5 million.

Option 2: $7.5 million.

Option 3: $5.0 million.

Option 4: $10.0 million.

Question 3 : Fashion, Inc. had a Retained Earnings balance of $10,000 at December 31, 2021. The company had an average income of $6,000 over the next 4 years, and an ending Retained Earnings balance of $13,000 at December 31, 2025. What was the total amount of dividends paid over the last four years?

Multiple Choice

Option 1: $20,250.

Option 2: $21,000.

Option 3: $24,000.

Option 4: $22,500.