A Corporation Declared and Issued a 15% Stock Dividend on November

question 154

Multiple Choice

A corporation declared and issued a 15% stock dividend on November 1. The following up-to-date information was available immediately prior to the dividend: $\begin{array}{|l|r|}\hline \text { Retained earnings } & \$ 750,000 \\\hline \text { Shares issued and outstanding } & 60,000 \\\hline \text { Market value per share } & \$ 15 \\\hline \text { Par value per share } & \$ 5 \\\hline\end{array}$ The amount that total stockholders' equity will increase (decrease) as a result of recording this stock dividend is:

• A) $45,000
• B) $135,000
• C) $(90,000)
• D) $(135,000)
• E) $0

---

Definitions:

Units

In business, refers to the individual items or a standardized measurement of quantity that can be counted to assess inventory, production, or sales.

Product

A good, idea, method, information, service, or object created as a result of a process and serves a need or satisfies a want.

Domestically Produced

Goods manufactured or produced within a country's borders, as opposed to imported from another country.

International Markets

Markets that span across different countries and cultures, involving the buying and selling of goods and services globally.