Trendy Corp

question 84

Multiple Choice

Trendy Corp. recently declared a 10% stock dividend. As of the date of the announcement, Trendy had 10 million shares outstanding which were selling on the NYSE for $50 per share. An accounting entry is required on the balance sheet in order to transfer an amount from retained earnings to the common stock and additional paid-in capital accounts. What is the dollar amount of retained earnings that will be transferred from retained earnings to the common stock account as the result of the stock dividend? Assume that the par value of Trendy is $2 per share.

• A) $2 million
• B) $50 million
• C) $45.45 million
• D) $12.5 million

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Label Control

A user interface element used to display text on a form or webpage, often static and used for titles, descriptions, or instructions.

Background Color

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A text element in a report that provides description or explanation about the data, such as column headers or titles.

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A feature in graphic design and word processor applications that allows users to change the background color of a shape or area.