Use This Information to Answer the Following Question

question 74

Multiple Choice

Use this information to answer the following question. Pinnacle Corporation has 90,000 shares of $10 par value common stock outstanding.The following transactions occurred during the year:
Mar. 17 Declared a 10 percent stock dividend to stockholders of record on March 20. Market value of the stock was $22 on March 17.
Mar. 30 Distributed the stock dividend.
-The entry to record the transaction of March 17 is:

• A)Stock Dividends 198,000 Common Stock Distributable 90,000
• Additional Paid-in Capital 108,000
• B)Common Stock Distributable 90,000 Common Stock 90,000
• C)Common Stock Distributable 198,000 Common Stock 90,000
• Retained Earnings 108,000
• D)Stock Dividends 198,000 Cash 198,000

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Definitions:

Chassis Grease

A lubricant used on various parts of a vehicle's chassis to reduce friction and prevent wear.

Penetrating Oil

A low-viscosity oil designed to penetrate tight spaces and loosen rusted or frozen parts.

Cloud Point

The temperature at which some of the fractions in a diesel fuel begin to wax (solidify) and the fuel takes on an opaque appearance. This can cause problems in the fuel subsystem by plugging filters, resulting in engine shutdown. Most diesel fuel conditioners contain cloud point and pour point depressants.

Wax Crystals

Solid crystalline substances formed in some oils and fats that can cause blockages in fuel systems or cloud the appearance of liquids at lower temperatures.