For the past year, Jenn's Floral Arrangements had taxable income of $198,600, beginning common stock of $68,000, beginning retained earnings of $318,750, ending common stock of $71,500, ending retained earnings of $316,940, interest expense of $11,300, and a tax rate of 21 percent. What is the amount of dividends paid during the year

Dividends=$158,704

The amount of dividends paid during the year is $158,704

Explanation:

Taxable Income=$198,600

Tax rate=i=21%=0.21

Beginning retained earnings=$318,750

Ending retained earnings=$316,940

Amount of dividends paid during the year=?

Income after tax is paid this year is:

Net income=$198,600*(1-i)

Net income=$198,600*(1-0.21)

Net income=$156,894

Net retained earnings=Ending retained earnings - Beginning retained earnings

Net retained earnings=$316,940 - $318,750

Net retained earnings=-$1,810

Dividends=Net income - Net retained earnings

Dividends=$156,894 -(-$1,810)

Dividends=$158,704

The amount of dividends paid during the year is $158,704