Use the Following Information for Questions
on January 1

question 69

Multiple Choice

Use the following information for questions
On January 1, Canary Co. had total shareholders' equity as shown below when their shares were selling at $25 per share. $\begin{array}{ll}\text { Common shares (125,000 shares) } & \$ 2,500,000 \\\text { Retained earnings } & 4,000,000 \\\quad \text { Total shareholders' equity } & \$ 6,500,000\end{array}$
-Assume the company declared and issued a 10% stock dividend and that the market price remained constant.The effect of this dividend would:

• A)Increase common shares by $312,500
• B)Increase common shares by $250,000
• C)Decrease retained earnings by $250,000
• D)Increase common shares by $400,000

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Definitions:

Iodine

A chemical element essential for thyroid gland function, contributing to the production of thyroid hormones.

Contain

To contain means to hold or enclose something within a defined space or area, preventing it from spreading.

Magnetic Resonance Imaging

A diagnostic technique that uses magnetic fields and radio waves to produce detailed images of the body's internal structures.

Nonionizing Radiation

A type of radiation that does not carry enough energy to ionize atoms or molecules, such as radiowaves and microwaves, considered less harmful to tissue than ionizing radiation.