Tangshan Mining Has Common Stock at Par of $200,000, Paid-In

Multiple Choice

Tangshan Mining has common stock at par of $200,000, paid-in capital in excess of par of $400,000, and retained earnings of $280,000. In states where the firm's legal capital is defined as the total of par value and paid-in capital in excess of par, the firm could pay out ________ in cash dividends without impairing its capital.

A) $280,000
B) $400,000
C) $480,000
D) $600,000