Bridget Owns 200 Shares of Common Stock of Jones Corporation

question 63

Multiple Choice

Bridget owns 200 shares of common stock of Jones Corporation.During the current year,Jones gives its shareholders the choice of receiving cash of $2 per share or one additional share of Jones common stock for each 5 shares of stock owned.The stock has a fair market value of $10 per share.Bridget chooses to take the additional shares of stock.How much income does Bridget have from the stock dividend?

• A)$0
• B)$200
• C)$400
• D)$1,000

---

Definitions:

Dividends

Disbursements from a corporation to its shareholders, typically derived from its profits.

Double-entry Accounting

An accounting method that records each transaction twice, as both a debit and a credit, to maintain the balance of the accounting equation.

Debit Account Balances

Balances that appear on the left side of the ledger, indicating resources or expenses.

Credit Account Balances

The amount owed by a borrower on a credit account, reflecting any purchases, payments, charges, or adjustments.