On June 1,20x5,Jomax Corporation Had 60,000 Shares of $10 Par

question 165

Multiple Choice

On June 1,20x5,Jomax Corporation had 60,000 shares of $10 par value common stock outstanding.On June 2,20x5,Jomax declared a 40 percent stock dividend to be distributed on July 5,20x5,to shareholders of record on June 15,20x5.What amount of retained earnings should be transferred to contributed capital because of this dividend?

• A)None
• B)Par value per share multiplied by the number of dividend shares
• C)Market value of the stock at the date of distribution multiplied by the number of dividend shares
• D)Market value of the stock at the date of declaration multiplied by the number of dividend shares

---

Definitions:

Intuitive Thought

A cognitive process that involves making judgments and solving problems without the explicit use of analytical rationale.

Symbolic Function

A cognitive ability to represent objects, people, and events with symbols or images, characteristic of early childhood development.

Sensorimotor

A stage in Piaget’s theory of cognitive development (from birth to about age 2) where infants learn about the world through their movements and sensory experiences.

Concrete-Operational

A stage in Piaget's theory of cognitive development where children gain the ability to think logically about concrete events and understand concepts of conservation.