06 Which of the following statement about stock cash dividend is correct? A. Investors who own stock on the date of declaration are entitled to receive the cash B. On the declaration of cash dividend date, the declaration of cash dividends decreases C. On the payment of cash dividend date, the payment of cash dividends increases dividend D. The net effect of declaration of cash dividends and payment of cash dividends is a dividend. retained earnings and increases cash. payable and decreases cash. reduction in both retained earnings and cash. Q7 IBM transferred to stockholders some of its equity investments costing $3,250,000 by declaring a property dividend on December 28, 2013, to be distributed on January 30, 2014, to stockholders of record on January 15, 2014. At the date of declaration, the securities have a market value of $4,000,000. IBM makes the following entries at the date of declaration: A. At date of declaration (December 28, 2013) Unrealized Holding Gain or Loss-Income 3,250,000 Equity Investments 3,250,000 Retained Earnings 4,000,000 Property Dividends Payable 4,000,000 B. At date of declaration (December 28, 2013) Equity Investments 750,000 Unrealized Holding Gain or Loss-Income 750,000 Retained Earnings 4,000,000 Property Dividends Payable 4,000,000 C. At date of declaration (December 28, 2013) Property Dividends Payable 4,000,000 Equity Investments 4,000,000 D, At date of declaration (December 28, 2013) Equity Investments 750,000 Unrealized Holding Gain or Loss-Income 750,000