A Corporation Declared and Issued a 15% Stock Dividend on October

question 156

Multiple Choice

A corporation declared and issued a 15% stock dividend on October 1. The following information was available immediately prior to the dividend: The amount that contributed capital will increase (decrease) as a result of recording this stock dividend is:

• A)$45,000.
• B)$135,000.
• C)$(45,000).
• D)$(135,000).
• E)$0.

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Definitions:

Rent Expense

The cost incurred from leasing a property or equipment for business operations, recognized on the income statement.

Square Feet

A measurement of area commonly used in the United States to quantify the size of a space, such as real estate or floor plans.

Profit Center

A division or segment of a company that is responsible for generating its own revenue and profit, distinct from cost centers.

Performance Evaluation

The process of assessing the execution of activities and tasks by employees or departments against set standards or objectives to inform management decisions.