Bruno's Has 7,000 Shares of Stock Outstanding with a Par

question 36

Multiple Choice

Bruno's has 7,000 shares of stock outstanding with a par value of $1.00 per share and a market value of $12 per share.The balance sheet shows $7,000 in the common stock account, $58,000 in the capital in excess of par account and $32,500 in the retained earnings account.The firm just announced a 50% (large) stock dividend.What is the value of the retained earnings account after the dividend?

• A)$29,000
• B)$30,500
• C)$32,500
• D)$34,500
• E)$36,000

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Definitions:

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