On October 1, 2018, Chief Corporation Declared and Issued a 10

question 32

Multiple Choice

On October 1, 2018, Chief Corporation declared and issued a 10% stock dividend. Before this date, Chief had 80,000 shares of $5 par common stock outstanding. The market value of Chief Corporation on the date of declaration was $10 per share. As a result of this dividend, Chief's retained earnings will:

• A) Decrease by $80,000.
• B) Not change.
• C) Decrease by $40,000.
• D) Increase by $80,000.

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Definitions:

Catabolism

The metabolic process that breaks down molecules into smaller units, releasing energy usually stored in ATP.

Anabolism

The metabolic process in living organisms that synthesizes complex molecules from simpler ones, often requiring energy.

Monosaccharide

The simplest form of carbohydrates, consisting of a single sugar molecule, such as glucose or fructose.

Disaccharide

A type of sugar formed by the combination of two monosaccharides, such as lactose and sucrose.