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Aaron Company plans to issue a large stock dividend. In accounting for this transaction, what effects occur to the contributed capital section of stockholders' equity?
Aaron Company plans to issue a large stock dividend. In accounting for this transaction, what effects occur to the contributed capital section of stockholders' equity? A. Common stock increases by the number of dividend shares x par value per share, and retained earnings decreases for the same amount B. Retained earnings increases by the number of dividend shares x par value per share, and additional paid-in capital increases for the balance C. Common stock increases by the number of dividend shares x par value per share, and retained earnings increases for the balance D. Common stock increases by the total market value of the dividend
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