The declaration and issuance of 15% stock dividend (when fair value of the share is greater than the par):
Enter 1, 2, 3, or 4 that represents the correct answer. The declaration and issuance of 15% stock dividend (when fair value of the share is greater than the par):
1. increases common shares outstanding and decreases total
2. decreases
3. does not change total stockholders’ equity and does not change paid-in capital in excess of par.
4. may increase or decrease paid-in capital in excess of par but does not change total stockholders' equity.
Stock dividends: Stock dividends are the number of shares issued by a company to the existing shareholders in a proportion equal to the number of shares owned by each shareholder, based on a stock dividend percentage.
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