Quirk Corporation issued a 3-for-2 stock split of its common stock which had a par value of $10 before the dividend. At what amount should retained earnings be capitalized for the additional shares issued? a) Par value b) Fair value on the declaration date c) Fair value on the payment date d) There should be no capitalization of retained earnings.
Quirk Corporation issued a 3-for-2 stock split of its common stock which had a par value of $10 before the dividend. At what amount should retained earnings be capitalized for the additional shares issued? a) Par value b) Fair value on the declaration date c) Fair value on the payment date d) There should be no capitalization of retained earnings.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Quirk Corporation issued a 3-for-2 stock split of its common stock which had a par
value of $10 before the dividend. At what amount should retained earnings be
capitalized for the additional shares issued?
a) Par value
b) Fair value on the declaration date
c) Fair value on the payment date
d) There should be no capitalization of retained earnings.
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