When a Property Dividend Is Declared, the Reduction in Retained

question 1

Multiple Choice

When a property dividend is declared, the reduction in retained earnings is for:

• A) The book value of the property on the date of declaration.
• B) The book value of the property on the date of distribution.
• C) The fair value of the property on the date of distribution.
• D) The fair value of the property on the date of declaration.