Reference no: EM132765424
Question - On January 1, Y1, the stockholders' equity section of Pearson Technology included the following balances:
Common stock ($20 par value; 100,000 shares authorized; 3,000 shares issued): $60,000
Additional Paid-In Capital: 140,000
Retained Earnings: 200,000
Total stockholders' equity: $400,000
During the year, Pearson entered into the following transactions:
March 1 - issued 420 shares for $30 per share.
April 1 - declared a 2:1 stock split for shareholders who owned shares at the close of May 1.
July 1 - issued 1,200 shares for $16 per share.
October 1 - repurchased 600 shares for $18 per share.
November 1 - declared a cash dividend of $2 per share for shareholders who own shares at the close on December 1.
December 31 - reported $130,130 of net income for the year ended December 31.
Required - What is the amount of dividends declared during the year ended December 31, Y1?