Anthony Company Declared and Paid $20,000 of Dividends During 2014

Anthony Company declared and paid $20,000 of dividends during 2014.The schedule of dividends follows: $$\begin{array} { l c } \text { Date Dividend Declared \& Paid } & \text { Amount Paid } \\\text { March 31, 2014 } & \$ 5,000 \\\text { June 30, 2014 } & \$ 5,000 \\\text { September 30, 2014 } & \$ 5,000 \\\text { December 31, 2014 } & \$ 5,000\end{array}$$ Anthony Company was acquired on June 1,2014 by Google Company.Google acquired 100 percent of Anthony Company.Both companies have a December 31 fiscal year end.What is the amount of preacquisition dividends in 2014?

A) 0
B) $5,000
C) $10,000
D) $15,000

Correct Answer:

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