A corporation with $10 par common stock issues a large stock dividend. The capitalization of retained earnings is equal...
A corporation with $10 par common stock issues a large stock dividend. The capitalization of retained earnings is equal to:
The market value of the shares to be distributed.
The market value of the shares outstanding.
The par value of the shares outstanding.
There is no capitalization of retained earnings in the case of a large stock dividend.
The par value of the shares to be distributed.
Homework Answers
Large stock dividend is more than 50% or 100% Stock dividend then Capitalization amount is :
capitalization = Par value per share*No of share distributed
So answer is e)
The par value of the shares to be distributed.
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