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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. | |
| Mar. 3 | Sold 1,000 shares of treasury stock for $28 per share. | |
| May 25 | Sold 1,000 shares of treasury stock for $16 per share. | |
| June 15 | Directors declared a $1.50 per share cash dividend payable on July 15 to the June 30 stockholders of record. |
|
| July 15 | Paid the dividend declared on June 15. | |
What is the amount in the Retained Earnings account immediately after the dividend on July 15?
A. $264,750
B. $392,500
C. $460,000
D. $338,500
E. $470,000
Answer
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