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

question 37

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 2% stock dividend on a date when the market price was $11 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) $3,200
• B) $6,400
• C) $4,800
• D) $8,800

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Definitions:

Positive Reinforcement

The process of encouraging or establishing a pattern of behavior by offering rewards when the behavior is exhibited.

Neutral

Describes a state or position of impartiality, or not favoring any side in a conflict, competition, or a situation requiring a choice.

Relearn

The process of learning information, skills, or behaviors again, which were previously learned but may have been forgotten or lost.

Exposure Therapy

A behavioral therapy technique that involves confronting fear or anxiety-inducing situations, objects, or thoughts directly to reduce the emotional response.