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

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Definitions:

Principal to Principal Theory

A theory in corporate governance that emphasizes the relationship and agreements between the major stakeholders or the top decision-makers in an organization.

Cross-Sector Collaborations

partnerships that bridge different parts of the economy, such as public, private, and non-profit organizations, to address complex societal issues.

Collaboration Affiliations

Partnerships or connections formed between individuals or organizations for a common purpose.

Diversified Sources of Revenue

Refers to an organization's strategy of obtaining funding from a variety of streams to reduce financial risk and ensure sustainability.