Zeman, Inc

question 31

Multiple Choice

Zeman, Inc. declares and distributes a 10% common stock dividend when it has 20,000 shares of $20 par value common stock outstanding. If the market value of the common stock is $30, the journal entry to record the stock dividend would include a:

• A)credit to Common Stock $100,000.
• B)credit to Common Stock $20,000.
• C)credit to Paid-in Capital in Excess of Par-Common $20,000.
• D)credit to Paid-in Capital in Excess of Par-Common $40,000.

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Definitions:

Dismissing Claim

The act of rejecting or ignoring a statement or argument without giving it proper consideration or offering sufficient evidence to the contrary.

False Reasons

Incorrect or misleading rationales presented to justify a conclusion or action.

Reasoning Errors

Mistakes or flaws in the process of thinking or reasoning, often leading to incorrect conclusions.

Worthy Argument

A claim supported by solid evidence and reasoning that stands up to critical scrutiny.