Debt Covenant Obligations Practice Test

Of the following is not a criteria for recognizing a liability associated with exit or disposal activities?

The board of Directors for the Steak Corporation declares a $3 per share cash dividend on November 1, Year 5, to be paid to owners on record at November 15, Year 5. Checks will be distributed on November 29, Year 5. Prior to declaring the dividend, Steak Corporation has 150,000 shares outstanding and held 25,000 shares of treasury stock. On November 23, Year 5, Steak bought back an additional 15,000 shares of treasury stock. On what date should Steak reduce their working capital for this dividend?