On January 2,2014 the Board of Directors of Moorehaven Mining

question 66

Multiple Choice

On January 2,2014 the board of directors of Moorehaven Mining Corporation declared a cash dividend of $1,200,000 to stockholders of record on January 18,2014,and payable on February 10,2014.The dividend is permissible by law in Moorehaven's state of incorporation.Selected data from Moorehaven's December 31,2013,balance sheet follow: The $1,200,000 dividend includes a liquidating dividend of

• A) $800,000.
• B) $700,000.
• C) $600,000.
• D) $200,000.

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Definitions:

In Pari Delicto

In equal fault.

Illegal Agreement

A contract or agreement that is not enforceable by law because it involves activities that are against the law or public policy.

Voidable

Voidable refers to a legal contract or transaction that is valid and enforceable on the surface but may be declared void by one of the parties due to certain defects or conditions.

Overturned

Refers to a decision, typically in a legal context, that has been reversed or nullified by a higher authority or court.