Answer:
amount of cash dividend paid = $80000
so correct option is 1. $80,000
Explanation:
given data
common stock = 100,000 shares
shares issued = 45,000
subsequently reaquired = 5,000
dividend= $2 per share
to find out
What is the amount of cash dividends
solution
first we get here no of share outstanding that is
no of share outstanding = shares issued - subsequently reaquired .........1
no of share outstanding = 45000 - 5000
no of share outstanding = 40000 shares
and
now we get amount of cash dividend paid here as
amount of cash dividend paid = outstanding share × dividend share ...........2
amount of cash dividend paid = 40000 × $2
amount of cash dividend paid = $80000
so correct option is 1. $80,000
