Accounting Flow Intuition: BASE Formula Video Lessons

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Problem: On January 1, 2009 Gucci Brothers Inc. started the year with a $500,000 credit balance in retained earnings and $600,000 balance in common stock. During 2009, the company earned net income of $100,000, declared a dividend of $15,000, and issued more stock for $25,000. What is total stockholders' equity on December 31, 2009?  a. $1,100,000 b. $1,210,000 c. $1,225,000 d. $1,240,000

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On January 1, 2009 Gucci Brothers Inc. started the year with a $500,000 credit balance in retained earnings and $600,000 balance in common stock. During 2009, the company earned net income of $100,000, declared a dividend of $15,000, and issued more stock for $25,000. What is total stockholders' equity on December 31, 2009? 

a. $1,100,000

b. $1,210,000

c. $1,225,000

d. $1,240,000

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