On October 31, 2020, ABC Company declared a dividend of $ 2.00 per share to be paid on November 15, 2020. On the date of the declaration, the company's books indicated the following: Common stock (par value $ 5) $ 500,000 Capital paid in excess of par value $ 500,000 Retained earnings $ 100,000          The declared dividend includes a liquidating dividend of: a. $100,000. b. $96,000. c. $196,000. d. $200,000.

Question

On October 31, 2020, ABC Company declared a dividend of $ 2.00 per share to be paid on November 15, 2020. On the date of the declaration, the company's books indicated the following:

Common stock (par value $ 5) $ 500,000

Capital paid in excess of par value $ 500,000

Retained earnings $ 100,000         

The declared dividend includes a liquidating dividend of:

a. $100,000.
b. $96,000.
c. $196,000.
d. $200,000.

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