Gordon Corporation Reported the Following Equity Section on Its Current

question 75

Multiple Choice

Gordon Corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $11.50 per share. What would be the balance in the Common stock account after the issuance of a 10% stock dividend?

• A)$200,000
• B)$246,000
• C)$220,000
• D)$226,000

---

Definitions:

Duty to Warn

A legal requirement to inform others of a danger that is not apparent, to prevent foreseeable harm.

Damages

A monetary compensation awarded to a person who has suffered loss or harm as a result of the wrongful act of another.

Physical Injury

Harm or damage inflicted upon a person's body.

Contract

A contractual accord enforceable by law, specifying duties and entitlements among two or more involved entities.