Intentos múltiples Prohibido. Esta evaluación solo se puede realizar una vez. >

Question

Intentos múltiples Prohibido. Esta evaluación solo se puede realizar una vez. > ??Al pasar a otra pregunta se guardará esta respuesta. k) Pregunta 3 de 10 Pregunta 3 Tangshan Mining has common stock at par of $200,000, paid-in capital in excess of par of $400,000, and retained earnings of $280,000, In states where the firm's legal capital is defined as the par value of common stock, the firm could pay out capital. its O a. $600,000 O b.$880,000 Oc.$200,000 O d. $680,000 à Al pasar a otra pregunta se guardará esta respuesta. 8 ro

Explanation / Answer

Firm can pay out the any amount other than firm’s legal capital. Here, firm’s legal capital is only par value of common stock. Hence, retained earnings and paid-in-excess of par can be distributed as dividends.

Hence, correct option is d. $680,000 ($400,000+$280,000)

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