Use the Following Information for Questions Below
on January 1,The $( 125,000$

question 41

Multiple Choice

Use the following information for questions below
On January 1,The Blue Azul Diving Co.had total shareholders' equity as shown below when their shares were selling at $25 per share:
Common shares $( 125,000$ shares) $\ldots \ldots \ldots \ldots . \$ 2,500,000$
Retained earnings $\ldots \ldots \ldots \ldots . 4,000,000$
Total shareholders' equity $\ldots \ldots \ldots \ldots . \$ 6,500,000$
-Assume the company declared and issued a 50% stock dividend.The effect of this dividend would

• A)increase common shares by $1,250,000 and shares issued and outstanding by 62,500.
• B)increase common shares by $1,250,000 with no change in the number of issued and outstanding shares.
• C)leave total shareholders' equity unchanged but increase the number of shares issued and outstanding to 187,500.
• D)reduce retained earnings by $2,000,000 and double the number of shares issued and outstanding.

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Definitions:

Elastic Fiber

Protein fibers found in the extracellular matrix of connective tissue, giving elasticity and resilience to tissues like skin, lungs, and blood vessels.

Irregular Bone

Bones characterized by their complex shapes, such as vertebrae and certain skull bones, serving various protective and supportive roles.

Short Bone

Type of bones that are as wide as they are long, providing support and stability with little movement.

Flat Bone

Bones that have a flat, thin shape and are often involved in protecting internal organs or providing a large area for muscle attachment.