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TLJ,Inc,Has the Following Stockholders' Equity Accounts and Amounts Before Paying

Question 106

Multiple Choice

TLJ,Inc.,has the following stockholders' equity accounts and amounts before paying dividends:  Paid-in Capital $100,000 Retained Earnings 25,000 Total $125,000 Deduct: Treasury Stock 10,000 Total Stockholders’ Equity $115,000\begin{array} { l l } \text { Paid-in Capital } & \$ 100,000 \\\text { Retained Earnings } & 25,000 \\\text { Total } & \$ 125,000 \\\text { Deduct: Treasury Stock } & \underline { 10,000 } \\\text { Total Stockholders' Equity } & \$ 115,000\end{array} Assuming that TLJ,Inc.,is restricted from declaring dividends that would cause stockholders' equity to be less than total paid-in capital,what is the maximum amount of dividends TLJ,Inc.'s board could declare?


A) $70,000
B) $15,000
C) $25,000
D) $65,000
E) $10,000

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