CarWorks Company Has 100,000 Authorized Shares of $4 Par Common

question 119

Multiple Choice

CarWorks Company has 100,000 authorized shares of $4 par common stock.The company issued 40,000 shares at $8.Subsequently, CarWorks declared a 2% stock dividend on a date when the market price was $11 a share.What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

• A) $8,800
• B) $4,800
• C) $3,200
• D) $6,400

---

Definitions:

Test-retest Reliability

The consistency of a test's results when the same individuals take the same test again after a period of time, measuring its stability over time.

Z score

A numerical metric that represents how a specific value's deviation relates to the average of a dataset, quantified by the number of standard deviations away from that average.

Normal Curve

A bell-shaped curve, also known as a Gaussian distribution, representing the spread of a variable in a way that most values cluster around the mean.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, indicating how spread out the data points are.