Duke Corporation reports the following components of stockholders' equity on December 31, 2010.

What is the amount of the dividend declared?

Question

Duke Corporation reports the following components of stockholders' equity on December 31, 2010.

What is the amount of the dividend declared?

Quizplus · Accepted Answer

To determine the amount of dividend declared, we need to look for the Retained Earnings component of Stockholders' Equity. From the information given, Retained Earnings increased from $208,500 to $330,000, which means the company had a net income of $121,500 ($330,000 - $208,500). The dividend declared would be a portion of the net income, and the answer choice of $121,500 matches the amount of net income earned for the year.

Duke Corporation Reports the Following Components of Stockholders' Equity on December