A Corporation Declared and Issued a 15% Stock Dividend on November

question 129

Multiple Choice

A corporation declared and issued a 15% stock dividend on November 1.The following up-to-date information was available immediately prior to the dividend:
$\begin{array}{|l|r|}\hline \text { Retained earnings } & \$ 750,000 \\\hline \text { Shares issued and outstanding } & 60,000 \\\hline \text { Market value per share } & \$ 15 \\\hline \text { Par value per share } & \$ 5 \\\hline\end{array}$
The amount that total stockholders' equity will increase (decrease) as a result of recording this stock dividend is:

• A)$45,000
• B)$135,000
• C)$(90,000)
• D)$(135,000)
• E)$0

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