A Corporation Declared and Issued a 15% Stock Dividend on November

question 68

Multiple Choice

A corporation declared and issued a 15% stock dividend on November 1.Prior to the dividend,the balance in retained earnings was $850,000,the number of shares of $5 par value stock issued and outstanding was 60,000,and the market value of the stock was $12.The amount of the change in total stockholders' equity as a result of recording this stock dividend is:

• A)$0.
• B)$45,000 increase.
• C)$108,000 decrease.
• D)$63,000 decrease.

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Definitions:

Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance.

Statistical Method

A technique or procedure applied to numerical data for the purpose of analyzing, interpreting, or explaining statistical phenomena.

Employee Leasing

A practice where businesses hire their workers through a professional employer organization, which then handles HR, payroll, and other administrative tasks.

Labour Costs

The total expenses incurred by employers for the payment of wages, benefits, and other forms of compensation to employees.