A Company Has 5,000 Shares of $1 Par Value Common

Multiple Choice

A company has 5,000 shares of $1 par value common stock and 6,000 shares of 2%,$98 par,noncumulative preferred stock outstanding.The balance in Retained Earnings at the beginning of the year was $750,000.Net income for the current year was $400,000.If the company paid a dividend of $3 per share on its common stock,what is the balance in Retained Earnings at the end of the year?

A) $1,123,240
B) $1,135,000
C) $1,150,000
D) $735,000
E) $723,240