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A parent company owns a 100% interest in a subsidiary. Recently, the subsidiary paid a 10% stock dividend. The dividend should be recorded on the
A parent company owns a 100% interest in a subsidiary. Recently, the subsidiary paid a 10% stock dividend. The dividend should be recorded on the books of the parent.
A. at the market value of the shares on the date of declaration.
B. at the par value or stated value of the shares received.
C. merely as a memo entry indicating that the cost of the original investment now is allocated to a greater number of shares.
D. at the market value of the shares on the date of distribution.
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