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Donald's Inc. would like to declare dividends by distributing accounts receivable rights. Partial financial information for Donald's Inc. is below. Cash balance..................$2,000 Inventory.......................$20,000 Accounts Receivable.........$7,500

Donald's Inc. would like to declare dividends by distributing accounts receivable rights. Partial financial information for Donald's Inc. is below.

Cash balance..................$2,000

Inventory.......................$20,000

Accounts Receivable.........$7,500

Dividends receivable.........$1,200

Common shares...............$100,000

Shareholder's equity.........$100,000

What is the maximum property dividend that Donald's Inc. can declare and pay given the above financial information?

$20,000

$1,200

$2,000

$7,500

None of the other alternatives are correct

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