On January 1, 2012, Dodd, Inc

question 29

Multiple Choice

On January 1, 2012, Dodd, Inc., declared a 10% ordinary share dividend when the fair value of the ordinary shares was $20 per share.Equity before the share dividend was declared consisted of:

What was the effect on Dodd's retained earnings as a result of the above transaction?

• A)$120,000 decrease
• B)$240,000 decrease
• C)$400,000 decrease
• D)$200,000 decrease

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