Gilligan Corporation Was Established on February 15,Year 1

question 49

Multiple Choice

Gilligan Corporation was established on February 15,Year 1.Gilligan is authorized to issue 500,000 shares of $6.00 par value common stock.As of December 31,Year 3,Gilligan's stockholders' equity accounts report the following balances:
At the end of Year 3,Gilligan decides to issue a 5% stock dividend.At the time of issue,the market price of the stock was $22 per share.
-What is the amount of retained earnings that will be transferred to paid-in capital as a result of the stock dividend issued by Gilligan Corporation?

• A)$60,500
• B)$16,500
• C)$44,000
• D)$108,500

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Definitions:

Audience-Focused Attitude

An Audience-Focused Attitude involves tailoring communication or actions to suit the interests, needs, or expectations of the target audience.

Low-Context Culture

A culture that relies heavily on explicit and direct communication, valuing clear messages.

Canadian

Pertaining to Canada, its people, culture, or the characteristics of this North American country.

High-Context Culture

A cultural orientation where communication is largely implicit, meaning is derived from context, gestures, and expressions rather than explicit words.