Lucid Company Declared a Property Dividend of 20,000 Shares of $1

question 118

Multiple Choice

Lucid Company declared a property dividend of 20,000 shares of $1 par Polk Company common stock.The Polk stock was purchased for $5 per share.Market value was $10 per share on the declaration date and $11 per share on the distribution date.What is the amount of the dividend?

• A)$100,000.
• B)$200,000.
• C)$220,000.
• D)$300,000.

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Definitions:

Medici Family

A wealthy and powerful Italian family who were significant patrons of the arts and instrumental in the Renaissance's development.

Humanism

In the Renaissance, an emphasis on education and on expanding knowledge (especially of classical antiquity), the exploration of individual potential and a desire to excel, and a commitment to civic responsibility and moral duty.

Palazzo Medici-Riccardi

A Renaissance palace in Florence, Italy, which served as the main residence of the Medici family, showcasing the wealth and power of this influential family.

Michelozzo

An Italian architect and sculptor of the Renaissance, known for his collaboration with Donatello and for designing the Palazzo Medici Riccardi in Florence.