When a Stock Dividend Is Declared and Issued

question 26

Multiple Choice

When a stock dividend is declared and issued:

• A)total paid-in capital does not change.
• B)total stockholders' equity does not change.
• C)retained earnings is normally decreased by the par value of the shares issued in the dividend.
• D)total paid-in capital is decreased by the market value of the shares issued in the dividend.

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