On June 30,2018,Dakota,Inc On July 1,2018,the Company Declared and Distributed a 11% Stock

question 178

Multiple Choice

On June 30,2018,Dakota,Inc.showed the following data on the equity section of their balance sheet: $$\begin{array} { | l | r | } \hline \text { Stockholders' Equity } & \\\hline \text { Common Stock, } \$ 1 \text { par; } 195,000 \text { shares authorized, } & \\149,000 \text { shares issued and outstanding } & \$ 149,000 \\\hline \text { Paid-In Capital in Excess of Par-Common } & \$ 260,000 \\\hline \text { Retained Earnings } & \$ 949,000 \\\hline \text { Total Stockholder's Equity } & \$ 1,358,000 \\\hline\end{array}$$ On July 1,2018,the company declared and distributed a 11% stock dividend.The market value of the stock at that time was $20 per share.As a result of this stock dividend,what is the balance of Retained Earnings?

• A) $770,580
• B) $951,000
• C) $981,780
• D) $621,200

---

Definitions:

Economics

A branch of social science that investigates the decision-making processes of individuals, governments, companies, and countries when distributing limited resources to fulfill their endless desires.

Weekend

The period from Friday evening through Sunday evening, specifically considered a time for leisure and rest from the workweek.

Original Bundle

In economics, this term refers to a specific combination of goods held by a consumer before any changes in constraints, such as budget or prices.

Price Of X

Refers to the monetary value or cost required to purchase a specific good or service denoted as "X".