If a Firm Has Retained Earnings of $10 Million, a Common

question 21

Multiple Choice

If a firm has retained earnings of $10 million, a common shares account of $15 million, and additional paid-in-capital of $5 million, how much would be transferred in (or out) of these accounts in response to a 50 percent stock dividend, respectively?

• A) − 100 percent, 0 percent, + 100 percent
• B) − 100 percent, + 100 percent, 0 percent
• C) − 100 percent, + 50 percent, + 50 percent
• D) − 50 percent, + 50 percent, + 50 percent

---

Definitions:

Realities

The state of things as they actually exist, as opposed to an idealistic or notional idea of them.

Marital Burnout

The gradual deterioration of love and ultimate loss of an emotional attachment between partners.

Slowly

At a leisurely or reduced pace, allowing for careful progression or appreciation.

Quietly

In a manner that makes little or no noise; silently or softly.