Atkins Company Had 20,000 Shares of $5 Par Value Common

question 78

Multiple Choice

Atkins Company had 20,000 shares of $5 par value common stock outstanding prior to a 10% common stock dividend declaration and distribution.The market value of the common stock on the declaration date was $11.Which of the following statements correctly describes the affect of the common stock dividend and declaration?

• A)Retained earnings decreased $22,000.
• B)Retained earnings decreased $10,000.
• C)Total stockholders' equity decreased $22,000.
• D)Total stockholders' equity decreased $10,000.

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Definitions:

Axle Hub Arrangements

The specific layout and configuration of axle hubs within a vehicle, which impacts the distribution of forces and overall vehicle stability.

Semi-floating

Describes a type of axle or bearing arrangement where the axle is partially supported by bearings or a bushing at one end, used in various mechanical applications to reduce stress and wear.

Full-floating

A type of axle design where the axle shaft only serves to transmit torque and does not bear the vehicle's weight, improving strength and durability.

Drive Axle Configurations

Drive axle configurations refer to the arrangement of the axles and wheels in a vehicle which affects its drive capabilities, such as 4x2, 6x4, etc.