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

question 93

Multiple Choice

Duke Corporation reports the following components of stockholders' equity on December 31,2010.
$\begin{array}{lr} \text {Common stock- \( \$ 25 \) par value, 100,000 shares authorized, 45,000 shares issued}\\ \text { and outstandino}&\$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 year 2011, the following transactions affected its stockholders' equity accounts.
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

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Definitions:

Reactive

A mode of response or behavior characterized by actions taken in response to external events or situations rather than initiating change proactively.

Expectancy Theory

A motivational theory that suggests an individual's behavior is determined by their expected outcomes or rewards.

Desired Outcomes

The specific results or achievements that an individual or organization aims to attain through various actions or initiatives.

Performance-to-Outcome Expectancy

is an individual's belief that performing a specific behavior will lead to a particular outcome.