Quirk corporation issued a 100% stock dividend of its common stock which had a par value of $10 before and after the dividend. At what amount should retained earnings be capitalized for the additional shares issued? Instructions: which is the correct answer 1. There should be no capitalization of retained earnings 2. Par value 3. Fair value on the declaration date 4. Fair value on the payment date
Quirk corporation issued a 100% stock dividend of its common stock which had a par value of $10 before and after the dividend. At what amount should retained earnings be capitalized for the additional shares issued? Instructions: which is the correct answer 1. There should be no capitalization of retained earnings 2. Par value 3. Fair value on the declaration date 4. Fair value on the payment date
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Quirk corporation issued a 100% stock dividend of its common stock which had a par value of $10 before and after the dividend. At what amount should
Instructions: which is the correct answer
1. There should be no capitalization of retained earnings
2. Par value
3. Fair value on the declaration date
4. Fair value on the payment date
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