If the Stock Dividends < 25%, recorded at fair market value. If the Stock Dividends > 25%, recorded at book value. Example1: Velvet Company has 5,000 shares issued and outstanding. Par value is $1; book value $32 and market value is $40. Instruction: prepare the entries at the different following situations 1- 10% stock dividend is declared (market value $40)

If the Stock Dividends < 25%, recorded at fair market value. If the Stock Dividends > 25%, recorded at book value. Example1: Velvet Company has 5,000 shares issued and outstanding. Par value is $1; book value $32 and market value is $40. Instruction: prepare the entries at the different following situations 1- 10% stock dividend is declared (market value $40)

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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