Amount of retained earnings available for dividends


At the beginning of 2011, Flaherty Company had retained earnings of $200,000. During the year Flaherty reported net income of $100,000, sold treasury stock at a "gain" of $36,000, declared a cash dividend of $60,000, and declared and issued a small stock dividend of 3,000 shares ($10 par value) when the market value of the stock was $20 per share. The amount of retained earnings available for dividends at the end of 2011 was:

a. $180,000.

b. $210,000.

c. $216,000.

d. $246,000.

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Accounting Basics: Amount of retained earnings available for dividends
Reference No:- TGS061373

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