Bagwell's Net Income for the Year Ended December 31, Year

Multiple Choice

Bagwell's net income for the year ended December 31, Year 2 was $175,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash paid for dividends during Year 2. $\begin{array}{|l|l|l|}\hline \text { At December } 31 &{\text { Y ear 2 }} & \text { Y ear 1 } \\\hline \text { Common Stock, } \$ 5 \text { par value } & \$ 500,000 & \$ 450,000 \\\hline \text { Paid-in capital in excess of par } & 948,000 & 853,000 \\\hline \text { Retained earnings } & 688,000 & 582,000 \\\hline\end{array}$

A) $95,000.
B) $69,000.
C) $79,000.
D) $201,000.
E) $50,000.