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QUESTION 9 During 2013, Bascom Bakery paid out $33,525 of common dividends. It ended the year with $197,500 of retained earnings versus the prior years retained earnings of $159,600. How much net income did the firm ean during the year? o a. $78,746 b. $82,683 e c. $71,425 od. $86,818 e. $74,996 QUESTION 10 Relaxant Inc. operates as a partnership. Now the partners have decided to convert the business into a corporation Which of the following statements 1s CORRECT? a. The firm will find it more difficult to raise additional capital to support its growth b. The company will probably be subject to fewer regulations and required disclosures . c. Relaxants shareholders (the ex-partners) will now be exposed to less liability d. Assuming the firm is profitable, none of its income will be subject to federal ancome taxes e. The firms incestors will he exnosed to less hahslity hut thev wal find it more difficult to ransfer their osnershi

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Question 9) Option Opening Retained Earnings Add: Net Income Less Dividend Paid Closing Retained Earnings 159600 33525 197500

  

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