On January 1, 2017, Susann, Inc What Happened to Retained Earnings as a Result of the Dividend

question 29

Multiple Choice

On January 1, 2017, Susann, Inc. declared a 15% stock dividend on its common stock when the market value of the common stock was $20 per share. Shareholders' equity before the stock dividend was declared consisted of:
$\begin{array}{lr}\text { Common stock, } \$ 10 \text { par value, authorized } 40,000 \text { shares; }\\\text { issued and outstanding } 5,000 \text { shares } & \$ 50,000 \\\text { Additional paid-in capital on common stock } & 200,000 \\\text { Retained earnings } &\underline{60,000} \\\text { Total shareholders' equity } &\underline{ \$ 310,000} \\\end{array}$

What happened to retained earnings as a result of the stock dividend declaration?

• A)$6,000 decrease
• B)$7,500 decrease
• C)$15,000 decrease
• D)No change

Understand the use and interpretation of z-scores across various test types.

Distinguish between percentile rank and percentage correct.

Understand age norm comparisons and their relevance in educational testing.

Calculate and interpret standard deviation and its application in the normal distribution curve.

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Definitions:

Dissonance

A psychological conflict resulting from incongruent beliefs and attitudes held simultaneously, often leading to an alteration in one of the attitudes to reduce the conflict.

Align

To adjust or arrange something in a straight line, or to bring into cooperation or agreement with a particular group, standard, or belief.

Foot-in-the-door Technique

A persuasive tactic involving getting a person to agree to a small request as a precursor to making them more likely to agree to a larger request later.

Small Request

A minor or insignificant petition or appeal made to another individual, often as a precursor to asking for a larger favor in compliance theories.