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Changes in the balance sheet accounts at June 30, 20X1 and 20X2 for the Poker Company are presented below: Increase (Decrease) Assets Cash $ 480,000

Changes in the balance sheet accounts at June 30, 20X1 and 20X2 for the Poker Company are presented below:

Increase
(Decrease)
Assets
Cash $ 480,000
Accounts receivable 200,000
Inventory 300,000
Long-term investments 200,000
Equipment (200,000 )
Accumulated depreciation (60,000 )
Liabilities and Stockholders Equity
Accounts payable $ (40,000 )
Dividends payable 400,000
Notes payableCurrent (200,000 )
Notes payableLong-term 400,000
Common stock, $1.00 par 300,000
Additional paid-in capital 100,000
Retained earnings 80,000

Additional Information for 20X2: Net income was $480,000 and dividends of $400,000 were declared. Common stock was issued for cash. A new long-term investment was acquired for $360,000. A long-term investment was sold for $160,000. Equipment that cost $600,000 was sold for $200,000. The book value of those assets was $150,000.

The dividends actually paid during 20X2 are:

Multiple Choice

  • $0.

  • $270,000.

  • $300,000.

  • $400,000.

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