Quirk Corporation Issued a 100% Stock Dividend of Its Common

question 110

Multiple Choice

Quirk Corporation issued a 100% stock dividend of its common stock which had a par value of $10 before and after the dividend. At what amount should retained earnings be capitalized for the additional shares issued?

• A) There should be no capitalization of retained earnings.
• B) Par value
• C) Fair value on the declaration date
• D) Fair value on the payment date

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Definitions:

Officer Involved Shootings

Incidents where law enforcement officers use their firearms to shoot or fatally wound a person.

Bystanders

Individuals who are present at an event or incident but do not take part in it.

Police Arrests

A process by which law enforcement authorities take individuals into custody, typically due to suspicion of their involvement in criminal activity.

Pain Compliance

A law enforcement technique that uses pain to gain compliance from an individual without causing permanent injury.