Tangshan Mining Has Common Stock at Par of $200,000, Paid-In

question 61

Multiple Choice

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 ________ in cash dividends without impairing its capital.

• A) $200,000
• B) $680,000
• C) $600,000
• D) $880,000