Use the Following Information for Questions

question 103

Multiple Choice

Use the following information for questions
On January 1, Brunhilde Corporation had 240,000 common shares issued.On March 17, the company declared a 5% stock dividend to be distributed on March 30.The market value of the shares was $9 on March 17 and $12 on March 30.
-The entry to record the transaction of March 17 would include a

• A)credit to Retained Earnings for $12,000.
• B)credit to Cash for $108,000.
• C)credit to Stock Dividends Distributable for $108,000.
• D)debit to Stock Dividends Distributable for $144,000.

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Definitions:

Domestic Currency

The currency that is legal tender in a country and used for domestic transactions.

Overvalued Currency

A currency that is traded at a price higher than its intrinsic value, often due to government intervention or speculative demand.

Manufacturing-Dependent

Describes economies or regions that primarily rely on the manufacturing sector for economic growth and employment.

Domestic Production

Goods and services produced within a country’s borders, contributing to its gross domestic production (GDP).