The Phillip Edwards Co. has net income of $2,460 for the current year. During the year, the common stock account increased in value by $1,500 and retained earnings increased by $350. What is the amount the firm paid in dividends to its shareholders during the year?

Question

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The firm paid $2,110 in dividends to its shareholders during the year. This is calculated by taking the net income of $2,460, adding the increase in retained earnings of $350, and subtracting the increase in common stock value of $1,500.