Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

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Interpreting a restriction on retained earnings
JP Corporation reported the following stockholders' equity:

Requirements
1. JP Corporation's agreement with its bank lender restricts JP's dividend payments for the cost of treasury stock the company holds. How much is the maximum amount of dividends TP can declare
2. Why would a bank lender restrict a corporation's dividend payments and treasury stock purchases