Anchor Company Has 1,000,000 Shares of Common Stock with a Par

question 53

Multiple Choice

Anchor Company has 1,000,000 shares of common stock with a par value of $5.Additional paid-in capital totals $5,000,000 and retained earnings is $8,000,000.The directors declare a 10% stock dividend when the market value is $15.The reduction of retained earnings as a result of the declaration will be:

• A)$0.
• B)$500,000.
• C)$800,000.
• D)$1,000,000.
• E)$1,500,000.

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Definitions:

Step-by-step Reinforcement

The process of enhancing desired behaviors through a systematic approach that rewards successive approximations of the target behavior.

Insight

A deep understanding of a person or situation, often arrived at suddenly, that clarifies the problem or solution.

Higher Animals

Refers to animals with more complex brains and cognitive abilities, typically including mammals and birds.

Stimulus Generalization

The tendency for the conditioned stimulus to evoke similar responses after the response has been conditioned.