Bruno's Has 7,000 Shares Outstanding with a Par Value of £1.00

question 25

Multiple Choice

Bruno's has 7,000 shares outstanding with a par value of £1.00 per share and a market value of £12 per share.The statement of financial position shows £7,000 in the ordinary equity account,£58,000 in the additional paid in capital account and £32,500 in the retained earnings account.The firm just announced a 50% (large) stock dividend.What is the value of the retained earnings account after the dividend?

• A)£29,000
• B)£30,500
• C)£32,500
• D)£34,500
• E)£36,000

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