Murphy's Has Shares of Stock Outstanding with a Par Value

question 59

Multiple Choice

Murphy's has shares of stock outstanding with a par value of $1 per share and a market value of $24.60 per share.The balance sheet shows $32,500 in the capital in excess of par account,$12,000 in the common stock account,and $68,700 in the retained earnings account.The firm just announced a stock dividend of 10 percent.What will be the balance in the retained earnings account after the dividend?

• A)$39,180
• B)$48,300
• C)$59,120
• D)$67,520
• E)$40,380

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