A Corporation Had the Following Account Balances on December 31

Multiple Choice

A corporation had the following account balances on December 31: $$\begin{array} { | l | l | l | l | } \hline \text { Assets } & & \text { Equities } & \\\hline \text { Cash } & \$ 10 & \text { Accounts payable } & \$ 2 \\\hline \text { Accounts receivable } & 8 & \text { Wages pay able } & 12 \\\hline \text { Inentory } & 16 & \text { Common shares } & 48 \\\hline \text { Machinery } & 42 & \text { Retained earnings appropriated tor bond } & \\\hline & & \text { Sinking fund } & 8 \\\hline & \$ 76 & \text { Retained earnings unappropriated } & 6 \\\hline & & & \$ 76 \\\hline\end{array}$$ The maximum amount of cash dividends that could be declared on this date is:

A) $6
B) $10
C) $14
D) $76