After recording all of its transactions for the first month of operations, O’Brien Inc. had the
following account balances (listed in alphabetical order):
What is O’Brien’s ending balance in retained earnings?
None of the above *
XYZ Corporation has taxable income of $20 million and pays its shareholders (all individuals) a dividend of
$8 million. If the corporate income tax rate is a flat rate of 35% and dividends are taxed at a flat rate of 15%,
the total amount of federal income tax paid by the corporation and its shareholders on XYZ’s earnings would
Refer to the data below. What was the company’s net income assuming no common stock was issued during
the year, and dividends of $10,000 were paid?