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Family Corporation declared a 30% stock dividend on 400,000 shares of $5 value common stock outstanding. Market price per common share on this d was $10. What is the amount of retained earnings capitalized with this transaction? O $600,000 O $1,200,000 There is no capitalization of retained earnings with this type of transaction. None of the choices are correct. O $120,000

Family Corporation declared a 30% stock dividend on 400,000 shares of $5 value common stock outstanding. Market price per common share on this d was $10. What is the amount of retained earnings capitalized with this transaction? O $600,000 O $1,200,000 There is no capitalization of retained earnings with this type of transaction. None of the choices are correct. O $120,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Family Corporation declared a 30% stock dividend on 400,000 shares of $5 par value common stock outstanding. Market price per common share on this date was $10. What is the amount of retained earnings capitalized with this transaction? $600,000 $1,200,000 There is no capitalization of retained earnings with this type of transaction. None of the choices are correct. $120,000
Transcribed Image Text:Family Corporation declared a 30% stock dividend on 400,000 shares of $5 par value common stock outstanding. Market price per common share on this date was $10. What is the amount of retained earnings capitalized with this transaction? $600,000 $1,200,000 There is no capitalization of retained earnings with this type of transaction. None of the choices are correct. $120,000
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