Question - 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