Duke Corporation reports the following components of stockholders' equity on December 31,2013:
What is the amount of the dividend declared?
A)$177,000
B)$135,000
C)$121,500
D)$326,000
E)$338,500

Question

Duke Corporation reports the following components of stockholders' equity on December 31,2013:  
What is the amount of the dividend declared?
A)$177,000 
B)$135,000 
C)$121,500 
D)$326,000 
E)$338,500

Quizplus · Accepted Answer

To determine the amount of the dividend declared, we need to look at Retained Earnings. The formula is: Beginning Retained Earnings + Net Income - Dividends = Ending Retained Earnings. Therefore, Dividends = Beginning Retained Earnings + Net Income - Ending Retained Earnings. From the information given, we can calculate the following:

Beginning Retained Earnings = $550,000
Net Income = $409,000
Ending Retained Earnings = $800,500

Dividends = $550,000 + $409,000 - $800,500 = $158,500

Therefore, the answer is C) $121,500.

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