Gilligan Corporation Was Established on February 15, Year 1

question 81

Multiple Choice

Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 400,000 shares of $12 par value common stock. As of December 30, Year 1, Gilligan's stockholders' equity accounts report the following balances: On December 31, Year 1, Gilligan decides to issue a 5% stock dividend. At the time of issue, the market price of the stock was $38 per share.What is the dollar value of the stock dividend issued by Gilligan Corporation?

• A) $76,000
• B) $4,800,000
• C) $24,000
• D) $20,000

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