On January 2, 2010, Lake Mining Co.'s board of directors declared a cash dividend of $400,000 to stockholders of record on January 18, 2010, payable on February 10, 2010. The dividend is permissible under law in Lake's state of incorporation. Selected data from Lake's December 2009 balance sheet are as follows:
Accumulated depletion $100,000
Capital stock 500,000
Additional paid-in capital 150,000
Retained earnings 300,000
The $400,000 dividend includes a liquidating dividend of:
a. $0
b. $100,000
c. $150,000
d. $300,000