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:

Electrons

Subatomic particles with a negative charge, found in all atoms and acting as the primary carrier of electricity in solids.

Protons

Positively charged subatomic particles found in the nucleus of an atom.

Neutrons

Subatomic particles found in the nucleus of an atom, carrying no electric charge.

Thylakoid Membrane

A membrane-bound compartment inside chloroplasts and cyanobacteria, essential for the light-dependent reactions of photosynthesis.