King Ltd Declared and Distributed a 12% Share Dividend (Bonus

question 46

Multiple Choice

King Ltd declared and distributed a 12% share dividend (bonus issue) when share capital was $380 000. What is the effect on total shareholders' equity?

• A) $45 600 increase
• B) It depends on the price of the bonus issue
• C) No effect
• D) $45 600 decrease

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