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erik
1 month ago
7

ABC issued 12,000 shares and subsequently reacquired 2,000 shares as treasury stock. The following year, ABC Corporation declare

d a regular dividend of $2 per share. What would be the total amount of the dividend expense
Business
1 answer:
Katen [3.5K]1 month ago
3 0

Answer:

The dividend expense will total $20,000

Explanation:

We know the total shares issued = 12,000

And Treasury stock = 2,000 shares

A regular dividend of $2 per share is declared

Now, we must calculate the total dividend

Outstanding shares = Issued shares - Treasury stock = 12,000 - 2,000 = 10,000 shares

Thus, the dividend expense is calculated as $2 × 10,000 = $20,000

Therefore, the total dividend expense equates to $20,000

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