Trendy Corp

question 84

Multiple Choice

Trendy Corp. recently declared a 10% stock dividend. As of the date of the announcement, Trendy had 10 million shares outstanding which were selling on the NYSE for $50 per share. An accounting entry is required on the balance sheet in order to transfer an amount from retained earnings to the common stock and additional paid-in capital accounts. What is the dollar amount of retained earnings that will be transferred from retained earnings to the common stock account as the result of the stock dividend? Assume that the par value of Trendy is $2 per share.

• A) $2 million
• B) $50 million
• C) $45.45 million
• D) $12.5 million

---

Definitions:

Inanimate Objects

Items that do not possess life, often depicted in art to convey symbolism, enhance the composition, or provide context.

Still Life

A genre of painting that focuses on inanimate subjects, typically commonplace objects which may be either natural (flowers, food) or man-made.

Flowers

The reproductive structure found in flowering plants, characterized by color, fragrance, and shape, crucial for plants' reproduction.

Georges de la Tour

A French Baroque painter known for his mastery of chiaroscuro and the quietude of his nocturnal scenes.