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: 
420,000 shares authorized x $102.25 per share = $42,945,000 
Common shares: 
100,000 shares authorized x $11.50 per share = $1,150,000 
Total share capital: 
$42,945,000 + $1,150,000 = $44,095,000

After the distribution of the $66,000 dividend: 
$44,095,000 - $66,000 = $44,029,000

Therefore, the answer is C) $550,000.

Following Is the Shareholders' Equity Section of the Balance Sheet