Milton Corporation Declared and Distributed a 8% Stock Dividend

question 27

Essay

Milton Corporation declared and distributed a 8% stock dividend.Milton had 440,000 common shares outstanding and 940,000 common shares authorized before the stock dividend.The board of directors determined the appropriate market value per share as $10.
Required:
How much should be recorded for the stock dividend? Record the journal entry (if any)for the shares distributed.

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Definitions:

Rejection Region

The range of values for which the null hypothesis is considered not probable and is therefore rejected in a hypothesis test.

Sign Test

A nonparametric test used to determine if there is a difference between matched or paired observations.

Distribution

Refers to the way in which data points are spread out across the range of possible values in a dataset.

Test Statistic

A computed value used to decide whether to reject the null hypothesis in statistical hypothesis testing.