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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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