Fisher Company Has 1,000,000 Share of Common Stock with a Par

question 52

Multiple Choice

Fisher Company has 1,000,000 share of common stock with a par value of $10.Additional paid-in capital totals $10,000,000 and retained earnings is $12,000,000.The directors declare a 6% stock dividend when the market value is $5.The reduction of retained earnings as a result of the declaration will be:

• A)$0.
• B)$300,000.
• C)$600,000.
• D)$500,000.
• E)None of the answers are correct.

---

Definitions:

Interrogator

A person, often associated with law enforcement or military, tasked with questioning individuals to obtain information, confessions, or intelligence.

Nine-Step Process

A structured approach or methodology that involves nine distinct steps or stages to achieve a particular goal or solve a problem.

Mentally Ill Persons

Individuals experiencing mental disorder(s) that significantly affect their ability to function in daily life, ranging from chronic mental illnesses to temporary conditions.

Perceived

Recognized or understood in a certain way by the mind.