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 0 10,000,000 decrease 100,000 increase 100,000 decrease

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
0
10,000,000 decrease
100,000 increase
100,000 decrease
 
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