Q 1.70: George Stevens has purchased 1,000 shares of stock in JKL Corporation. JKL recently reported...

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Q 1.70: George Stevens has purchased 1,000 shares of stock in JKL Corporation. JKL recently reported a year end net income of

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Answer 1

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George, along with his fellow stockholders will receive the remainder in the form of Dividends.

Dividends are earnings that are distributed to the stockholders. Out of the net income of $1400000, the amount that goes to retained earnings is $1000000 and difference of $400000 will be distributed to stockholders as dividends.

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Answer 2

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Q 1.70: George Stevens has purchased 1,000 shares of stock in JKL Corporation. JKL recently reported...

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