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:

Organizational Norms

The shared standards, values, and behaviors that are accepted and expected within a specific organization or group.

Request for Proposal

A formal document issued by an organization to solicit proposals from potential suppliers or service providers.

Metacognitive Strategies

Techniques or approaches used to plan, monitor, and evaluate one's own understanding and learning processes.

Routine Expertise

The skill level achieved when individuals can perform tasks efficiently and effectively with minimal conscious effort.