A Company with 100,000 Authorized Shares of $4 Par Common

question 37

Multiple Choice

A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company 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) $3,200
• B) $6,400
• C) $4,800
• D) $8,800

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Definitions:

Distorted Thinking

A pattern of thought that is twisted or misconstrued, often leading to negative emotional outcomes or unhealthy behavior.

Unrealistic Beliefs

False or distorted beliefs about ourselves, others, or the world that can lead to problematic behaviors and emotional distress.

Cognitive Therapy

Cognitive therapy is a form of psychotherapy that emphasizes the importance of thought patterns in influencing behavior and emotions, aiming to change negative thoughts to improve psychological well-being.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning techniques.