Tangshan Mining has common stock at par of $200,000, paid-in capital i

Tangshan Mining has common stock at par of $200,000, paid-in capital in excess of par of $400,000, and retained earnings of $280,000.

In states where the firm’s legal capital is defined as the par value of common stock, the firm could pay out ________ in cash dividends without impairing its capital.
A) $200,000
B) $680,000
C) $600,000
D) $880,000

ANSWER

B