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Duke Corporation Reports the Following Components of Stockholders' Equity on December

question 176

Multiple Choice

Duke Corporation reports the following components of stockholders' equity on December 31, 2013: $\begin{array}{lr}\text { Common stock — } \$ 25 \text { par value, } 100,000 \text { shares authorized, 45,000 shares issued } & \$ 1,125,000 \\\text { and outstanding } \\\text { Paid-in capital in excess of par value, common stock } & 60,000\\\text { Retained earnings } & 460,000 \\\text { Total stockholders' equity }& \$ 1,645,000\end{array}$ $Duke Corporation reports the following components of stockholders' equity on December 31, 2013: \begin{array}{lr} \text { Common stock — } \$ 25 \text { par value, } 100,000 \text { shares authorized, 45,000 shares issued } & \$ 1,125,000 \\ \text { and outstanding } \\ \text { Paid-in capital in excess of par value, common stock } & 60,000\\ \text { Retained earnings } & 460,000 \\ \text { Total stockholders' equity }& \$ 1,645,000 \end{array} What is the amount of the dividend declared? A) $177,000 B) $135,000 C) $121,500 D) $326,000 E) $338,500$ What is the amount of the dividend declared?

Definitions:

Compounded Monthly

Interest calculation method where interest is added to the principal balance monthly, affecting future interest accrual.

Payment Stream

A series of two or more payments required by a single transaction or contract.

Obligation

A legal or moral duty to do something or pay something, often within the context of contracts and agreements.

Compounded Semi-Annually

Involves calculating the addition of interest to the principal sum of a loan or deposit on a half-yearly basis, incrementally increasing the amount earned or owed.