Assume a Firm Has Declared a 20% Stock Dividend on Its

question 136

Multiple Choice

Assume a firm has declared a 20% stock dividend on its 1 million shares of outstanding $5 par value common stock. If the market value of the stock at the date of the stock dividend is $14 per share and the retained earnings account balance before the stock dividend was $7,600,000, what is the retained earnings account balance after the stock dividend?

• A)$3,600,000
• B)$1,960,240
• C)$7,600,000
• D)$4,800,000

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EPA Administrator

The chief executive officer of the Environmental Protection Agency, responsible for enforcing the nation's environmental laws.

Manufacture

Manufacture involves the process of converting raw materials into finished goods through various techniques and processes, typically involving labor and machinery.

Distribution

The act of presenting a product or service for utilization or consumption by a consumer or business entity.

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An act or omission that obstructs, damages, or inconveniences the rights of the community or a significant number of people.