A Company with 100,000 Authorized Shares of $4 Par Common

question 24

Multiple Choice

A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a 4% stock dividend on a date when the market price was $12 a share. What is the amount transferred from the Retained Earnings account to Paid-in Capital accounts as a result of the stock dividend?

• A) $12,800
• B) $19,200
• C) $32,000
• D) $48,800

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Definitions:

Ravenna

A city in Italy, famous for its well-preserved late Roman and Byzantine architecture and mosaics.

Katholikon

The main church in a Greek Orthodox monastery.

Hosios Loukas

A historic monastery in Greece, renowned for its Byzantine architecture, mosaics, and significance in the Orthodox Christian tradition.

Pendentives

Architectural elements that allow the placement of a circular dome over a square room or an elliptical dome over a rectangular room by transitioning the shape through triangular sections.