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

question 198

Multiple Choice

Duke Corporation reports the following components of stockholders' equity on December 31,2013:
$\begin{array}{lr}\text { Common stock }-\$ 2.5 \text { par value, } 100,000 \text { shares authorized, } 38,000 \text { shares }\\\text { issued and outstanding } & \$1,125,000 \\ \text { Paid-in capital in excess of par value, common stock } & 60,000 \\\text { Retained earnings } & 460,000 \\ \text { Total stockholders' equity } & \$ 1,645,000\end{array}$

In 2014 , the following trarisactions affected its stockholders' equity accourits
Jan. 1 Purchased 4,500 shares of its own stock at $\$ 27$ cash per share.
Jan. 5 Directors declared a $\$ 3$ per share cash dividend payable on Feb. 28 to the Feb. stockholders of record.

Feb. 28 Paid the dividend declared on January 5.

What is the amount of the dividend declared?

• A) $177,000
• B) $135,000
• C) $121,500
• D) $326,000
• E) $338,500