Ducheyne Electric Recently Declared a 15 Percent Stock Dividend

question 52

Multiple Choice

Ducheyne Electric recently declared a 15 percent stock dividend.On the date of the stock dividend Ducheyne had 16 million shares outstanding priced at $46 per share in the market.An accounting entry was required on the balance sheet transferring some retained earnings to the common stock account.If retained earnings were $280 million prior to the transaction,what was the dollar amount of retained earnings after the transfer?

• A) $280.0 million
• B) $110.4 million
• C) $234.0 million
• D) $277.6 million
• E) $169.6 million

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Definitions:

Administrative Costs

Expenses related to the general administration of a business, such as salaries of non-production employees, office supplies, and utilities.

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Family-friendly

Policies or practices that are considerate of and supportive towards employees' family commitments, enabling better work-life balance.

Alienating

Creating a feeling of estrangement or detachment among individuals or within a group, often leading to a sense of isolation or disconnection.