Bridgeport Corporation owned 15400 shares of Harper Corporation's $5 par value common stock. These shares were purchased 2020 for $326326. On May 4, 2022, Bridgeport declared a property dividend of one share of Harper for every twenty shares of Bridgeport stock held by a stockholder. On that date, when the market price of Harper was $35 per share, there were 308000 sha of Bridgeport outstanding. What net reduction in retained earnings would result from this property dividend? (Round intermediate calculations of cross rate to 2 decimal places e.g. 15.25.) O $539000 O $326326 O $154000

Bridgeport Corporation owned 15400 shares of Harper Corporation's $5 par value common stock. These shares were purchased 2020 for $326326. On May 4, 2022, Bridgeport declared a property dividend of one share of Harper for every twenty shares of Bridgeport stock held by a stockholder. On that date, when the market price of Harper was $35 per share, there were 308000 sha of Bridgeport outstanding. What net reduction in retained earnings would result from this property dividend? (Round intermediate calculations of cross rate to 2 decimal places e.g. 15.25.) O $539000 O $326326 O $154000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Bridgeport Corporation owned 15400 shares of Harper Corporation's $5 par value common stock. These shares were purchased in
2020 for $326326. On May 4, 2022, Bridgeport declared a property dividend of one share of Harper for every twenty shares of
Bridgeport stock held by a stockholder. On that date, when the market price of Harper was $35 per share, there were 308000 shares
of Bridgeport outstanding. What net reduction in retained earnings would result from this property dividend? (Round intermediate
calculations of cross rate to 2 decimal places e.g. 15.25.)
○ $539000
O $326326
○ $154000
O $231000

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