The stockholders” equity section of Lawton Corporation as of December 31, 2006, was as follows:

90. The stockholders” equity section of Lawton Corporation as of December 31, 2006, was as follows: Common stock, par value $2; authorized 20,000 shares; issued and outstanding 10,000 shares $ 20,000 Paid-in capital in excess of par 30,000 Retained earnings 75,000 $125,000 On March 1, 2007, the board of directors declared a 15% stock dividend, and accordingly 1,500 additional shares were issued. On March 1, 2007, the fair market value of the stock was $6 per share. For the two months ended February 28, 2007, Lawton sustained a net loss of $10,000. What amount should Lawton report as retained earnings as of March 1, 2007? A. $56,000. B. $62,000. C. $66,000. D. $72,000.

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