INTERMEDIATE ACCOUNTING (LL)-W/ACCESS
INTERMEDIATE ACCOUNTING (LL)-W/ACCESS
17th Edition
ISBN: 9781119598565
Author: Kieso
Publisher: WILEY
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Chapter 15, Problem 4CA
To determine

Stock dividend: A stock dividend refers to issuing the own stocks to the stockholders on a pro rata basis by a corporation. This is done without receiving the payment. The stock dividend results in an increase in the amount of legal or stated capital of the organization. The dividend is charged to the retained earnings or other capital accounts, which is not a part of legal capital.

(a)

To discuss: To discuss stock dividend and stock split.

To determine

(b)

To discuss: To discuss the reasons for declaring stock dividend and stock split.

To determine

(c)

The amount to be capitalized for retained earnings in relation to stock dividend.

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INTERMEDIATE ACCOUNTING (LL)-W/ACCESS

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