XYZ Corporation Declares a 10 Percent Stock Dividend Distributable to All

question 91

True/False

XYZ Corporation declares a 10 percent stock dividend distributable to all shareholders.There is only the one class of stock outstanding,and shareholders do not have any choices with respect to the distribution.Carol had owned 100 shares of stock,and she received 10 new shares as a result of the stock dividend.The stock is trading at $25 per share as of the distribution.Carol will recognize $250 of dividend income.

---

Definitions:

Willful Misconduct

Intentional or deliberate wrongdoing or reckless behavior by an individual, typically leading to harm or breach of contractual obligations.

Excludes Liability

A legal term that refers to clauses within contracts that attempt to limit or exclude one's responsibility for certain types of damages or losses.

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, typically used when monetary compensation is not adequate.

Sale Of Goods

The transaction between a seller and a buyer in which the ownership of tangible personal property is transferred from one to the other, usually in exchange for money.