On December 1, Year 1, the board of directors of Buy & Large, Inc., declared a cash dividend of $2 per share on the 300,000 common shares outstanding on record at December 31, Year 1, payable January 10, Year 2, the following year. No other dividends were declared in either year. What is the amount and on which Year 1 financial statement does Dividends appear?

A. $(600,000); Income Statement
B. $600,000; Income Statement
C. $(600,000); Statement of Shareholders' Equity
D. $600,000; Statement of Shareholders' Equity
E. $(600,000); Statement of Cash Flows
F. $600,000; Statement of Cash Flows
G. $(600,000); Balance Sheet
H. $600,000; Balance Sheet

Ans: C. $(600,000); Statement of Shareholders' Equity