On September 1,2016,Orville Corporation has unrestricted Retained Earnings of $600,000,Appropriated Retained Earnings of $400,000,Cash of $850,000,and Accounts Payable of $50,000.What is the maximum amount that can be used for cash dividends?

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The maximum amount that can be used for cash dividends is the unrestricted Retained Earnings, which is $600,000. Appropriated Retained Earnings are set aside for specific purposes and cannot be used for dividends.

On September 1,2016,Orville Corporation Has Unrestricted Retained Earnings of $600,000,Appropriated