Explain how the reciprocity calculation is modified in periods after the declaration of a stock dividend for

Question:

Explain how the reciprocity calculation is modified in periods after the declaration of a stock for firms using the cost method.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...