A companys Board of Directors approved and declared a stock dividend of 50,000 shares during the current fiscal year On the declaration date, the company's common stock was selling for $18 per share Immediately prior to the declaration of the stock dividend, the company had 500,000 outstanding shares of $1 par value common stock As a result of the issuance of this stock dividend, which of the following will occur A Common Stock will not change Additional Paid in Capital (APIC) will not change Retained Earnings will not change B Common Stock will increase by $50,000 Additional Paid in Capital (APIC) will increase by $850,000 Retained Earnings will decrease by $900,000 C Common Stock will increase by $50,000 Additional Paid in Capital (APIC) will decrease by $850,000 Retained Earnings will increase by $900,000 D Common Stock will decrease by $50,000 Additional Paid in Capital (APIC) will decrease by $850,000 Retained Earnings will not change E Common Stock will increase by $900,000 Additional Paid in Capital (APIC) will not change Retained Earnings will decrease by $900,000

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Posted on Sep 30, 2024

A companys Board of Directors approved and declared a stock dividend of 50,000 shares during the current fiscal year. On the declaration date, the company's

A companys Board of Directors approved and declared a stock dividend of 50,000 shares during the current fiscal year. On the declaration date, the company's common stock was selling for $18 per share. Immediately prior to the declaration of the stock dividend, the company had 500,000 outstanding shares of $1 par value common stock. As a result of the issuance of this stock dividend, which of the following will occur?

	A.	Common Stock will not change; Additional Paid-in Capital (APIC) will not change; Retained Earnings will not change.
	B.	Common Stock will increase by $50,000; Additional Paid-in Capital (APIC) will increase by $850,000; Retained Earnings will decrease by $900,000.
	C.	Common Stock will increase by $50,000; Additional Paid-in Capital (APIC) will decrease by $850,000; Retained Earnings will increase by $900,000.
	D.	Common Stock will decrease by $50,000; Additional Paid-in Capital (APIC) will decrease by $850,000; Retained Earnings will not change.
	E.	Common Stock will increase by $900,000; Additional Paid-in Capital (APIC) will not change; Retained Earnings will decrease by $900,000.