Multiple Choice
The KatyDid Co. is paying a $1.25 per share dividend today. There are 120,000 shares outstanding with a par value of $1.00 per share. As a result of this dividend,the:
A) retained earnings will decrease by $150,000.
B) retained earnings will decrease by $120,000.
C) common stock account will decrease by $150,000.
D) common stock account will decrease by $120,000.
E) capital in excess of par value account will decrease by $120,000.
Correct Answer:
Verified
Correct Answer:
Verified
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