A Company with 100,000 Authorized Shares of $4 Par Common

question 37

Multiple Choice

A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a 2% stock dividend on a date when the market price was $11 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

• A) $3,200
• B) $6,400
• C) $4,800
• D) $8,800

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Definitions:

Dreams

Experiences of imagined images, sounds, or other sensations during sleep, often representing subconscious desires or fears.

Animal Learning

The process through which animals acquire new behaviors or knowledge as a result of experiences.

Intelligent Behavior

Actions or responses that demonstrate understanding, problem-solving skills, and the ability to adapt to new situations.

Evolution

The process in which a multitude of organisms are presumed to have originated and spread out from ancient origins during the Earth's chronological history.