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

question 114

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) $480,000
• C) $600,000
• D) $880,000

---

Definitions:

Increased Dedication

A heightened level of commitment or devotion towards a particular activity, cause, or goal.

Alcohol Consumption

The act of drinking beverages containing ethanol, which can range from moderate drinking to alcohol abuse, affecting health, behavior, and social relationships.

Income And Expenses

Refers to the money received by an individual or organization (income), and the cost incurred for goods or services (expenses).

Reflect

To think deeply or carefully about something, often for the purpose of gaining insight or understanding.