On June 30,2017,Texas,Inc

question 153

Multiple Choice

On June 30,2017,Texas,Inc.showed the following data on the equity section of their balance sheet:

On July 1,2017,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)$768,060
• B)$952,000
• C)$983,220
• D)$617,800

---

Definitions:

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders instead of cash.

Market Price

Market price is the current price at which an asset or service can be bought or sold in the open market.

Total Assets

The sum of all current and non-current assets owned by a business, reflecting the company's overall financial strength on the balance sheet.

Liabilities

Financial obligations or debts that a company owes to others, due to past transactions or events.