1. 8.

Share dividends [LO 17.3] The company with the equity accounts shown here has declared a 15 per cent share dividend when the market value of its shares is $53 per share. What effects will the distribution of the share dividend have on the equity accounts?

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Ordinary shares (245 000 shares on issue) $ 245 000 Reserves Retained earnings 61 800 2758 300 Total equity $ 362 100