Write the next sentence in the following story.

How to account for dividends paid
Recognize when to record the liability of the company to pay the cash dividends.
This occurs on the " date of declaration, " when the board of directors formally authorizes payment of dividends. Under standard accounting procedures, expenses are recorded when they are incurred.

pick from the following. 1). If the regular expenses were paid using the yearly bank statement or a similar accounting process, the dollar amount of an expense would automatically be deducted from the total amount. In this example, gross receipts should be made on your behalf. 2). It is generally recommended to record also the costs for the payroll, monitoring, and maintenance of company operations. Write down the name of the corporation in the annual or quarterly ledger. 3). In this case, dividend expenses are recorded because by declaring them the company is held liable to make good on the declaration and deliver the dividend. A declaration specifies when the declaration is made, when the date of record is, and when the dividend will be paid. 4). The board will also have to report accounts that are past due or overdue. For example, in january 2017, the board of directors has charged $50 , 000 upon deductible contributions and other such expenses.. The answer should be
3).