Saint, Inc

question 135

Short Answer

Saint, Inc. declares a 15% common stock dividend when it has 30,000 shares of $10 par value common stock outstanding. If the market value of $24 per share is used, the amounts debited to Stock Dividends and credited to Paid-in Capital in Excess of Par are:

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Definitions:

GAAP

Generally Accepted Accounting Principles; a common set of accounting rules and standards used in the United States.

Par Value

The face value of a bond or stock as stated by the issuing company, which may differ from its market value.

Undervalued

A term used to describe assets or securities that are selling for a price presumed to be below their true intrinsic value.