On September 11, 2008, Orr Corporation has unrestricted Retained Earnings of $6,000,000, Appropriated Retained?

Retained Earnings and Appropriated Retained Earnings are two separate categories. A company can pay a dividend up to the amount of Retained Earnings as long as it has enough cash to cover the amount of the dividend plus pay its current bills. Since $7,500,000 is enough to meet both those requirements, a $6,000,000 (c) dividend may be declared.