XYZ Corporation Declares a 10 Percent Stock Dividend Distributable to All

question 91

True/False

XYZ Corporation declares a 10 percent stock dividend distributable to all shareholders.There is only the one class of stock outstanding,and shareholders do not have any choices with respect to the distribution.Carol had owned 100 shares of stock,and she received 10 new shares as a result of the stock dividend.The stock is trading at $25 per share as of the distribution.Carol will recognize $250 of dividend income.

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Definitions:

Administrative Agencies

Government bodies responsible for the oversight and administration of specific functions, such as regulation, enforcement of laws, and the provision of government services.

Basic Functions

Essential roles or operations that are fundamental to the performance or existence of an entity, system, or process.

Administrative Agencies

Governmental bodies established to oversee and regulate specific activities, implement laws, and administer public policy in numerous areas.

Highly Regulated Industries

Sectors of the economy that are subject to extensive government regulations and oversight, often for safety, health, or ethical reasons.