The Charter of a Corporation Provides for the Issuance of 100,000

Multiple Choice

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared?

A) $60,000
B) $20,000
C) $120,000
D) $100,000