Qdot International Originally Issued 50,000 Shares of Common Stock at a Price

question 11

Multiple Choice

Qdot International originally issued 50,000 shares of common stock at a price of $20 per share. A year later, they distributed a 10% stock dividend to shareholders. At the time of the stock dividend, the share price had gone up to $24 per share. Which of the following statements is TRUE?

• A) Qdot will record sales revenues of $120,000.
• B) Qdot will record a loss of $20,000.
• C) Qdot will record a gain of $20,000.
• D) Qdot will record neither a gain nor a loss.

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Definitions:

Logical Arguments

Reasoning presented in a structured and coherent manner to persuade or explain, based on principles of logic.

Indirect Approach

A communication strategy where the main point is not stated directly at the beginning but is embedded within the message.

Outside Evidence

Information or data that comes from external sources, used to support arguments or conclusions.

Feasibility Report

A document that assesses the practicality of a proposed plan or project, evaluating its potential for success.