If a Firm Has Retained Earnings of $40 Million, a Common

question 35

Multiple Choice

If a firm has retained earnings of $40 million, a common shares account of $50 million, and additional paid-in-capital of $25 million, how much would be transferred in (or out) of these accounts in response to a 40 percent stock dividend, respectively?

• A) − 40 percent, 0 percent, + 40 percent
• B) − 40 percent, + 40 percent, 0 percent
• C) − 75 percent, + 37.5 percent, + 37.5 percent
• D) − 75 percent, + 40 percent, + 40 percent

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Definitions:

Segregated Units

Military or other organizational units that are divided based on race, ethnicity, religion, or gender, often seen historically in the armed forces.

Integrated Units

Military or organizational units composed of members from different racial, ethnic, or gender groups, especially significant in historical contexts of segregation.

Full Persons

Refers to the recognition of individuals' full legal and human rights, often discussed in contexts of civil rights and emancipation.

Philadelphia Convention

A meeting in 1787 in Philadelphia where the Constitution of the United States was drafted, marking a pivotal moment in American history.