Tangshan Mining has common stock at par of $200,000, paid-in capital in excess of par of $400,000,

Fantastic news! We've Found the answer you've been seeking!

Question:

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 total of par value and paid-in capital in excess of par, how much could the firm pay out in cash dividends without impairing its capital?

A. $280,000

B. $400,000

C. $480,000

D. $600,000