Trendy Corp

question 39

Multiple Choice

Trendy Corp.recently declared a 10% stock dividend.As of the date of the announcement,Trendy had 10 million shares outstanding which were selling on the NYSE for $50 per share.An accounting entry is required on the balance sheet in order to transfer an amount from retained earnings to the common stock and additional paid-in capital accounts.What is the dollar amount of retained earnings that will be transferred from retained earnings to the common stock account as the result of the stock dividend? Assume that the par value of Trendy is $2 per share.

• A)$6 million
• B)$5 million
• C)$4 million
• D)$3 million
• E)$2 million

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Definitions:

Fear Of Failure

The persistent anxiety or apprehension about not meeting a standard of success or achieving a desired outcome.

Overcome

To successfully deal with or gain control over something challenging, such as an obstacle, difficulty, or adversity.

Internal Struggle

The psychological conflict within an individual, often involving competing desires, beliefs, or needs.

Internal Struggle

A personal conflict within an individual, often involving competing values or desires.