Answered: 3. ABC Company has 100,000 shares of $5…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 3RE

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Question

3. ABC Company has 100,000 shares of $5 par value stock issued and outstanding. It declares a 15% stock dividend when the stock is worth $100/share. How will retained earnings change as a result of the stock dividend?

Group of answer choices

1,500,000 increase

75,000 decrease

15,000 decrease

1,500,000 decrease

4. ABC Company has 100,000 shares of $5 par value stock issued and outstanding. It declares a 30% stock dividend when the stock is worth $100/share. How will retained earnings change as a result of the stock dividend?

Group of answer choices

30,000 decrease

3,000,000 decrease

150,000 increase

150,000 decrease

5. ABC Company has 100,000 shares of $5 par value stock issued and outstanding. It declares a 2:1 stock split when the stock is worth $100/share. By what amount will retained earnings change?

Group of answer choices

10,000,000 decrease

100,000 increase

100,000 decrease

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