On December 1, 2013 Nilo Corp declared a property dividend to be distributed on December 31, 2013.

Question:

On December 1, 2013 Nilo Corp declared a property to be distributed on December 31, 2013. On December 1, 2013, the property to be transferred had a carrying amount of $60,000 and a fair value of $78,000. What is the effect of this property on Nilo's retained earnings after all nominal accounts are closed?
A. $0
B. $18,000 increase
C. $60,000 decrease
D. $78,000 decrease
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...