Question

Jay-cee corporation had 20,000 shares of $4 par value common stock outstanding on january 1. on january 20, the company purchased 2,000 of its stock for $16 per share. on july 3, the company reissued 1,000 of the shares at $20 per share. jay-cee uses the cost method to account for its treasury stock. assume the company paid a dividend of $5 per share on august 3. what is the total amount of the dividends that would be paid to the common stockholders?

Answer 1

19000 x 5 = $95,000 total to common