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Question
Duke Corporation reports the following components of stockholders equity on December 31, 2013:
| Common stock$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding | $1,125,000 |
| Paid-in capital in excess of par value, common stock | 60,000 |
| Retained earnings | 460,000 |
| Total stockholders equity | $1,645,000 |
| In 2014, the following transactions affected its stockholders equity accounts. | ||
| Jan. 1 | Purchased 4,500 shares of its own stock at $27 cash per share. | |
| Jan. 5 | Directors declared a $3 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record. |
|
Feb. 28 |
Paid the dividend declared on January 5. |
|
What is the amount of the dividend declared?
A. $177,000
B. $135,000
C. $121,500
D. $326,000
E. $338,500
Answer
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