Trendy Corp

question 15

Multiple Choice

Trendy Corp.recently declared a 10% share 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 ordinary shares and additional paid-in capital accounts.What is the dollar amount of retained earnings that will be transferred from retained earnings to the ordinary shares account as the result of the share 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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Definitions:

Atrial Systole

The contraction of the atria chambers of the heart, which pushes blood into the ventricles.

Ventricular Systole

The phase of the cardiac cycle in which the ventricles contract, pumping blood out of the heart to the lungs and the rest of the body.

Isovolumetric Contraction

A phase in the cardiac cycle where the heart's ventricles contract with no change in volume because all valves are closed.

Myocardial Infarction

Commonly known as a heart attack, it occurs when blood flow to a part of the heart is blocked for a long enough time that part of the heart muscle is damaged or dies.