Ask Question
3 December, 11:52

Suppose for a particular year a firm had comprehensive income of $9,000, a beginning book value of equity of $76,000, and an ending book value of equity of $77,000. Using the clean surplus accounting relation, how much were the firm's dividends that year?

+1
Answers (1)
  1. 3 December, 12:22
    0
    B. $8000

    Explanation:

    Given that

    Income = $9000

    Beginning book value = 76000

    Ending book value = 77000

    Dividends = Income + beginning book value of equity - ending book value of equity.

    Therefore,

    Dividends = 9000 + 76000 - 77000

    = 85000 - 77000

    = $8000

    Thus, dividends for the following year given the following data is = $8000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose for a particular year a firm had comprehensive income of $9,000, a beginning book value of equity of $76,000, and an ending book ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers