Klingon Corporation Has Only One Class of Shares,its Common Shares

question 68

Multiple Choice

Klingon Corporation has only one class of shares,its common shares.Klingon has assets of $200,000 and liabilities of $160,000.It has $40,000 of excess liquidity that it does not need to pay currently maturing obligations.What is the maximum property dividend that Klingon may pay to its common shareholders?

• A) $60,000
• B) $10,000
• C) $40,000
• D) $30,000

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