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

question 130

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 stockholder's' 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. 5 stockholders of record.

Feb. 28 Paid the dividend declared on January 5.
Mar. 3 Sold 1,000 shares of treasury stock for $\$ 28$ per share
May 25 Sold 1,000 shares of treasury stock for $\$ 16$ per share
June 15 Directors declared a $\$ 1.50$ per share cash dividend payable on July 15 to the June 30 stockholders of record

July 15 Paid the dividend declared on June 15

What is the amount in the Retained Earnings account immediately after the dividend on July 15?

• A)$264,750
• B)$392,500
• C)$460,000
• D)$338,500
• E)$470,000

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Definitions:

Trade Discount

A reduction granted by a supplier on the list or catalog prices of goods or services, often based on the volume of transactions.

Trade Discount

A reduction in the retail price of goods, granted by the wholesaler or manufacturer to the retailer for the purpose of resale.

Trade Discount

A reduction from the list price granted by a seller to a buyer, typically for bulk purchases or to business customers in a particular industry.

Trade Discount

A reduction in the listed price of goods or services, offered by sellers to buyers in the business-to-business market.