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) ordinary equity account will decrease by £150,000.
D) ordinary equity account will decrease by £120,000.
E) additional paid in capital value account will decrease by £120,000.
Correct Answer:
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