At the end of the previous year, a firm had shareholders equity on the balance sheet at a book value of $10,000. During the current year, the firm earned $1,000 in net income, paid dividends of $400, issued new stock of $340 and used $120 to repurchase common stock. What is the amount of all-inclusive dividends at the end of the current year? A. $10,820 B. $12,000 C. $180 D. $11,000 Solution D)11,000.

1. At the end of the previous year, a firm had shareholders equity on the balance sheet at a book
value of $10,000. During the current year, the firm earned $1,000 in net income, paid dividends
of $400, issued new stock of $340 and used $120 to repurchase common stock. What is the
amount of all-inclusive dividends at the end of the current year?
A.
$10,820
B.
$12,000
C.
$180
D.
$11,000
Solution
D)11,000