1. Bagwell's net income for the year ended December 31, Year 2 was $175,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash paid for dividends during Year 2.

At December 31	Year 2	Year 1
Common Stock, $5 par value	$500,000	$450,000
Paid-in capital in excess of par	948,000	853,000
Retained earnings	688,000	582,000

a) $79,000.

b) $201,000.

c) $95,000.

d) $50,000.

e) $69,000.