What will be retained earning available for future dividends

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Question 1: On September 1, 20X1, the Davidson Company purchased, on the open market, 10,000 shares of its own fully paid common stock outstanding for $200,000. At the time of this purchase, the Davidson Company had 100,000 shares of common stock outstanding. On October 1, 20X1, the board of directors of the Davidson Company declared a $3 dividend to holders of record on October 10, payable October 15. The unappropriated retained earnings on August 31, 20X1, were $18,210,000. After the payment of the dividend on October 15, retained earnings available for future dividends will be

Option A. $17,740,000.

Option B. $17,910,000.

Option C. $17,940,000.

Option D. $18,010,000.

Reference no: EM132469305

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