E13–3 Ashkenazi Companies has the following stockholders’ equity account:

Assuming that state laws define legal capital solely as the par value of common stock, how much of a per-share dividend can Ashkenazi pay? If legal capital were more broadly defined to include all paid-in capital, how much of a per-share dividend could Ashkenazi pay?

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Common stock (350,000 shares at $3 par) $1,050,000 Paid-in capital in excess of par 2,500,000 Retained earnings 750,000 Total stockholders' equity $4,300,000