Following is the shareholders' equity section of the balance sheet of the Everslim Company: Share capital:
Preferred shares,420,000 shares authorized,
Common shares,100,000 shares authorized,
The preferred shares are currently selling for $102.25 per share and the common shares are currently selling for $11.50 per share.
The total share capital after the distribution of a $66,000 dividend is:

Question

Following is the shareholders' equity section of the balance sheet of the Everslim Company: Share capital:
Preferred shares,420,000 shares authorized,
 Common shares,100,000 shares authorized,
 The preferred shares are currently selling for $102.25 per share and the common shares are currently selling for $11.50 per share.
The total share capital after the distribution of a $66,000 dividend is:

Quizplus · Accepted Answer

- Preferred shares outstanding: 420,000
- Common shares outstanding: 100,000
- Total value of preferred shares: 420,000 x $102.25 = $42,945,000
- Total value of common shares: 100,000 x $11.50 = $1,150,000
- Total share capital: $44,095,000
- After distribution of $66,000 dividend, total share capital becomes: $44,029,000
- Therefore, the answer is C: $550,000.

Following Is the Shareholders' Equity Section of the Balance Sheet