Milton Corporation Declared and Distributed a 8% Stock Dividend

question 9

Essay

Milton Corporation declared and distributed a 8% stock dividend.Milton had 440,000 common shares outstanding and 940,000 common shares authorized before the stock dividend.The board of directors determined the appropriate market value per share as $10.
Requirement:
How much should be recorded for the stock dividend? Record the journal entry (if any)for the shares distributed.

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Definitions:

Time Delays

The period between the initiation of an action and its effect or outcome, often causing inconvenience or the need for adjustments in planning.

Counteracting Team Pattern

A teamwork strategy employed to neutralize or mitigate negative behaviors or tendencies within a team to ensure effective collaboration and productivity.

Decentralized Communication Network

A structure where communication occurs freely among various levels and parts of an organization without a strict hierarchy, fostering faster decision-making and innovation.

Second-chance Meetings

Meetings designed to give individuals or teams an opportunity to revisit decisions or actions and possibly rectify past mistakes or oversights.