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The dividend was paid on February9, Year5, to stockholders of record as of January28, Year5. On what date should Rice decrease retained earnings by the amount of the dividend?
1.January15, Year5. 2.January31, Year5. 3.January28, Year5. 4.February9, Year5.
agree with answers .................................
Action should be taken in the declaration date15 January.
January15, Year5 is the correct answer thanks
As the Divided has been declared on15th Jan' year5, the retained earnings has to be reduced on the same date, not on the date when it has been paid. Hence the answer is option1. ' January15, Year5'
3. January28, year5 (date or record)
the declaration day "1.January15, Year5"
