Arnold, Inc

question 66

Multiple Choice

Arnold, Inc. declares and distributes a 10% common stock dividend when it has 70,000 shares of $100 par value common stock outstanding. If the market value of the common stock is $20, the journal entry to record the stock dividend would include a:

• A)debit to Retained Earnings $140,000.
• B)debit to Retained Earnings $700,000.
• C)credit to Paid-in Capital in Excess of Par-Common $140,000.
• D)credit to Paid-in Capital in Excess of Par-Common $700,000.

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Definitions:

Disruptive Emotions

Strong feelings that can interfere with an individual’s ability to function effectively in personal or professional contexts.

Emotional Intelligence

The ability to recognize, understand, manage, and use one’s own emotions positively to relieve stress, communicate effectively, empathize with others, overcome challenges, and defuse conflict.

Analytically

Pertaining to the systematic examination of complex data or problems to understand their nature or to find solutions.

Making Decisions

The cognitive process of selecting a course of action from among multiple alternatives, often involving consideration of potential outcomes and implications.