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

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Definitions:

Revenue Retrieval

The process of collecting and bringing back revenue that might have been lost, underreported, or incorrectly processed.

Resale Revenue

The income generated from selling purchased or previously owned goods to another party.

Recycling Revenue

Earnings derived from the gathering, processing, and sale of recyclable materials.

Processing Cost

The expenses involved in changing raw materials into finished products, including labor, materials, and overhead.