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On December 1, 2015, Arther Company had 200,000 shares of $1 par value common stock issued and outstanding. The next day they declared and distributed a 50% stock dividend. The market value of the stock on that date was $9 per share. Provide the journal entry for the transaction.
Goodwill
An intangible asset that arises when a company acquires another business for more than the fair value of its identifiable net assets, representing expected future benefits from synergies, brand, and customer loyalty.
Investment
An asset or item acquired with the goal of generating income or appreciation in value.
Stockholders' Equity
The portion of a company's capital that belongs to the shareholders, calculated as the company's total assets minus its total liabilities.
Consolidated Statement
Financial statements that combine the accounting information of a parent company with its subsidiaries, presenting it as a single economic entity.
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