On May 1, 2014, Ziek Corp

question 34

Multiple Choice

On May 1, 2014, Ziek Corp. declared and issued a 10% common stock dividend. Prior to this dividend, Ziek had 200,000 shares of $1 par value common stock issued and outstanding. The fair value of Ziek 's common stock was $20 per share on May 1, 2014. As a result of this stock dividend, Ziek's total stockholders' equity

• A) increased by $400,000.
• B) decreased by $400,000.
• C) decreased by $20,000.
• D) did not change.

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Definitions:

Warranty Period

The specific time period during which a manufacturer or vendor is obligated to replace or repair defective parts of a product.

Sales Promotional Material

Marketing documents or items designed to increase sales or promote the features, advantages, and benefits of products or services.

Remittance Advice

A document sent by a customer to a seller, informing the seller that their invoice has been paid.

Related Merchandise

Products or items that are connected by theme, purpose, or brand, often promoted or sold together to enhance consumer experience.