Question 10 of 10 View Policies Show Attempt History Current Attempt in Progress > 0/1 !!! × A 10% stock dividend will increase the number of shares issued by 12800 (128000 × 10%). At a market price of $30 per share, total paid-in capital will increase by $384000 (12800 shares × $30/share) and retained earnings will decrease by that same amount. Grouper Inc. has retained earnings of $509000 and total stockholders' equity of $2001000. It has 128000 shares of $8 par value common stock outstanding, which is currently selling for $30 per share. What will occur if Grouper declares a 10% stock dividend on its common stock? ● Retained earnings will decrease by $102400 and total stockholders' equity will increase by $102400. O Net income will decrease by $102400. Retained earnings will decrease by $384000 and total paid-in capital will increase by $384000. O Retained earnings will decrease by $384000 and total stockholders' equity will increase by $384000.
Question 10 of 10 View Policies Show Attempt History Current Attempt in Progress > 0/1 !!! × A 10% stock dividend will increase the number of shares issued by 12800 (128000 × 10%). At a market price of $30 per share, total paid-in capital will increase by $384000 (12800 shares × $30/share) and retained earnings will decrease by that same amount. Grouper Inc. has retained earnings of $509000 and total stockholders' equity of $2001000. It has 128000 shares of $8 par value common stock outstanding, which is currently selling for $30 per share. What will occur if Grouper declares a 10% stock dividend on its common stock? ● Retained earnings will decrease by $102400 and total stockholders' equity will increase by $102400. O Net income will decrease by $102400. Retained earnings will decrease by $384000 and total paid-in capital will increase by $384000. O Retained earnings will decrease by $384000 and total stockholders' equity will increase by $384000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
Transcribed Image Text:Question 10 of 10
View Policies
Show Attempt History
Current Attempt in Progress
>
0/1
!!!
× A 10% stock dividend will increase the number of shares issued by 12800 (128000 × 10%). At a market price of $30 per
share, total paid-in capital will increase by $384000 (12800 shares × $30/share) and retained earnings will decrease by that
same amount.
Grouper Inc. has retained earnings of $509000 and total stockholders' equity of $2001000. It has 128000 shares of $8 par value
common stock outstanding, which is currently selling for $30 per share. What will occur if Grouper declares a 10% stock dividend on
its common stock?
● Retained earnings will decrease by $102400 and total stockholders' equity will increase by $102400.
O Net income will decrease by $102400.
Retained earnings will decrease by $384000 and total paid-in capital will increase by $384000.
O Retained earnings will decrease by $384000 and total stockholders' equity will increase by $384000.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education