When a Subsidiary Issues a Stock Dividend, an Amount Equal

question 12

Multiple Choice

When a subsidiary issues a stock dividend, an amount equal to the fair value of the shares should be removed from retained earnings and transferred to paid-in-capital in excess of par, if the distribution:

• A)​is less than 20% of the previously outstanding shares.
• B)​exceeds 20% of the previously outstanding shares.
• C)​is more than 50% of the previously outstanding shares.
• D)​does not exceed 20% to 25% of the previously outstanding shares.

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Definitions:

Subliminal Priming

The use of stimuli presented below the threshold of conscious perception to influence thoughts, feelings, or actions.

Conscious Awareness

The mental state of being fully present and aware of oneself and the surroundings.

Subliminal Sounds

Sounds that are played below the conscious level of hearing, purportedly influencing behavior or perception.

Subliminal Sights

Visual stimuli that are below one's threshold for conscious perception but can influence thoughts, feelings, or actions.