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Problem:

Wheeler Corporation had retained earnings as of 12/31/10 of $15 million. During 2011, Wheeler's net income was $7 million. The retained earnings balance at the end of 2011 was equal to $20 million. Therefore

A) Wheeler paid a dividend in 2010 of $5 million.

B) Wheeler paid a dividend in 2010 of $2 million.

C) Wheeler sold common stock during 2010 for $5 million.

D) Wheeler purchased treasury stock in 2010 for $2 million.

Explain in detail and also show all work please provide step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91146675

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