The Balance in the Common Shares Account After the Distribution

Multiple Choice

The balance in the Common Shares account after the distribution of a $0.75 per share cash dividend is:

$\begin{array} { l }\text { Share capital: }\\ \text { Common shares, } 100,000 \text { shares authorized, }\\65,000 \text { shares issued } & \underline{\$ 650,000} \\\text { Total share capital } & \$ 650,000 \\\text { Retained earnings } & \underline{349,000} \\\text { Total shareholders' equity } & \underline{\$ 999,000} \\\end{array}$

The common shares are currently selling for $15.50 per share.

The balance in the Common Shares account after the distribution of a $0.75 per share cash dividend is:

A) $976,500
B) $650,000
C) $627,500
D) $575,000