Dube Electric Recently Declared a 15 Percent Share Dividend

question 24

Multiple Choice

Dube Electric recently declared a 15 percent share dividend.On the date of the share dividend Dube had 16 million shares outstanding priced at R46 per share in the market.An accounting entry was required on the statement of financial position transferring some retained earnings to the ordinary equity account.If retained earnings was R280 million prior to the transaction, what was the rand amount of retained earnings after the transfer?

• A) R280.0 million
• B) R110.4 million
• C) R234.0 million
• D) R277.6 million
• E) R169.6 million

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Definitions:

Trespass to Chattels

A tort in which one person unlawfully interferes with another person's lawful right of possession of personal property.

Conversion

In legal terms, conversion refers to the unauthorized act of possessing or using someone else's property as if it were one's own.

Sale on Approval

A transaction in which goods are delivered to a buyer for examination before the sale is finalized, allowing for return if not satisfied.

Voidable Title

A title to property or goods that may be declared invalid by a court due to fraud, incapacity, or other issues, allowing the person harmed to void the transaction.