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

question 3

Multiple Choice

A corporation declared and issued a 15% stock dividend on October 1.The following information was available immediately prior to the dividend:
$\begin{array}{llr} \text { Retained earnings} &\$750,000\\ \text { Shares issued and outstanding } &60,000\\ \text { Market value per share} &\$15\\ \text { Par value per share } &\$5\\\end{array}$

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:

Synergies

The combined effect of a group or system that exceeds the sum of their individual effects, enhancing productivity or value.

Organizations

Groups of individuals working together towards common goals with a structured framework.

Ecosystem Concept

An approach in business that views industries and markets as interconnected environments where companies work cooperatively and competitively.

Strategic Thinking

The process of planning to achieve a desired future, considering long-term success and integrating foresight, insight, and peripheral vision.