A Corporation Declared and Issued a 15% Stock Dividend on October

question 222

Multiple Choice

A corporation declared and issued a 15% stock dividend on October 1.The following information was available immediately prior to the dividend: The amount that contributed capital will increase (decrease) as a result of recording this stock dividend is:

• A)$45,000.
• B)$135,000.
• C)$(45,000).
• D)$(135,000).
• E)$0.

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Definitions:

Special-Interest Groups

Organizations comprised of members sharing common interests or goals that seek to influence public policy and decision-making processes.

Business Ethics

The study of appropriate business policies and practices regarding potentially controversial subjects including corporate governance, insider trading, bribery, discrimination, and corporate social responsibility.

Primary Stakeholders

Individuals or groups that have a direct interest or stake in the actions, success, or policies of an organization, including customers, employees, and investors.