Crane Company has 514000 shares of $10 par value common stock outstanding. During the year Crane declared a 15% stock dividend when the market price of the stock was $36 per share. Three months later Crane declared a $0.60 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by $3130260. $484600. $2775600. $508860.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Crane Company has 514000 shares of $10 par value common stock outstanding. During the year Crane declared a 15%
stock dividend when the market price of the stock was $36 per share. Three months later Crane declared a $0.60 per share
cash dividend. As a result of the dividends declared during the year, retained earnings decreased by
$3130260.
$484600.
$2775600.
$508860.
Transcribed Image Text:Crane Company has 514000 shares of $10 par value common stock outstanding. During the year Crane declared a 15% stock dividend when the market price of the stock was $36 per share. Three months later Crane declared a $0.60 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by $3130260. $484600. $2775600. $508860.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education