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

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Definitions:

Per Capita Real GDP

A measure of a country's economic output that accounts for its number of people, adjusting for inflation to represent the value of goods and services produced per person.

Expenditures Approach

A method for calculating GDP that sums total spending on goods and services within an economy, including consumption, investment, government spending, and net exports.

GDP

Gross Domestic Product is the summed monetary value of all ultimate goods and services generated inside a country's territory in a defined interval.

Per Capita GDP

A metric that measures a country's economic output per person, dividing the GDP of a country by its population; often used to compare economic prosperity across countries or regions.