Use the Following Information for Questions 68 and 69

question 1

Multiple Choice

Use the following information for questions 68 and 69.
The balance in retained earnings at December 31, 2014 was $1,080,000 and at December 31, 2015 was $873,000. Net income for 2015 was $750,000. A stock dividend was declared and distributed which increased common stock $375,000 and paid-in capital $165,000. A cash dividend was declared and paid.
-The amount of the cash dividend was

• A) $372,000.
• B) $417,000.
• C) $582,000.
• D) $957,000.

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Definitions:

Seniority

A system where priority or importance is given to individuals based on the length of service or tenure within an organization or institution.

Union Membership

The status of being a member of an organized group of workers who come together to make decisions about the work conditions of their employment.

Employed Wage

The compensation or earnings received by an individual in exchange for performing work or services as an employee.

Salary Workers

Employees who are paid a fixed amount of money or salary, rather than being paid hourly.