The Board of Directors Must Assign a Per Share Value

question 108

Multiple Choice

The board of directors must assign a per share value to a stock dividend declared that is equal to the

• A)average cost.
• B)zero.
• C)original issue price.
• D)fair value.

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Definitions:

Residual Value

The estimated salvage value an asset will have at the end of its useful life.

Manufacturing Equipment

Machinery and tools that are used in the process of producing goods in a manufacturing facility.

Salvage Value

Salvage Value is the estimated residual value of an asset at the end of its useful life, expected to be recovered once the asset is no longer useful in operations.

Straight-Line Method

A method of allocating the cost of an asset evenly across its useful life for accounting and depreciation purposes.