Lucid Company Declared a Property Dividend of 20,000 Shares of $1

question 36

Multiple Choice

Lucid Company declared a property dividend of 20,000 shares of $1 par Polk Company common stock. The Polk stock was purchased for $5 per share. The fair value of Polk's stock was $10 per share on the declaration date and $11 per share on the distribution date. What is the amount of the dividend?

• A) $100,000.
• B) $200,000.
• C) $220,000.
• D) $300,000.

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Definitions:

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