On January 2, Year 2, Lake Mining Co.'s board of directors declared a cash dividend of $400,000 to stockholders of record on January 18, Year 2, payable on February 10, Year 2. The dividend is permissible under law in the state where Lake is incorporated. Selected balances from its December 31, Year 1 balance sheet are as follows. Accumulated depletion $100,000 Capital stock 500,000 Additional paid-in capital 150,000 Retained earnings 300,000 The $400,000 dividend includes a liquidating dividend of:
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On January 2, Year 2, Lake Mining Co.'s board of directors declared a cash dividend of $400,000 to s...
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