Use the Following Information for Questions

question 135

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 30 would include a

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

---

Definitions:

Kohlberg's Theory

A theory of moral development proposed by Lawrence Kohlberg, which suggests that individuals progress through a series of stages of moral reasoning as they mature.

Moral Development

The process through which individuals acquire the standards of right and wrong that guide their thinking and behavior in terms of ethical and social responsibilities.

Highest Stage

In various developmental theories, this term signifies the ultimate phase of development, characterized by the attainment of peak capabilities or understanding.

Mutual Give-and-take

A reciprocal relationship or exchange where both parties benefit from giving something to the other.