Question
22) Arlees Corporation has an investment in 100,000 shares of Lake Company common stock with a cost of $1,000,000. These shares are used in a
22) Arlees Corporation has an investment in 100,000 shares of Lake Company common stock with a cost of $1,000,000. These shares are used in a property dividend to stockholders of Arlees. The property dividend is declared on May 25 and scheduled to be distributed on July 31 to stockholders of record on June 15. The fair value per share of Lake stock is $28 on May 25, $25 on June 15, and $30 on July 31. The net effect of this property dividend on retained earnings is a reduction of?
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
8th edition
978-1259569197
