STU Corporation Is Authorized to Issue 500,000 Shares of $12

question 147

Multiple Choice

STU Corporation is authorized to issue 500,000 shares of $12.00 par value common stock. As of December 2014, STU's stockholders' equity accounts report the following balances: At the end of 2014, ABD decided to issue a 15% stock dividend, when the market price of the stock was $14 per share.
Determine the dollar amount to be transferred from Retained Earnings to paid-in capital accounts as a result of the stock dividend.

• A) $95,400
• B) $111,300
• C) $900,000
• D) $1,050,000

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Definitions:

Paired Comparisons

A statistical technique that involves comparing each pair in a set of observations to assess differences.

Independent

Not influenced or controlled by others in matters of opinion, conduct, etc; thinking or acting for oneself.

Tukey's Method

A statistical test used to identify outliers in a data set.

Difference Exists

Refers to the assertion that there is a statistically significant variation between two or more groups or variables being studied.