Question
ABC declared a property dividend. The dividend consisted of Land. The land had originally been purchased $40,000. The value of the land on the declaration
ABC declared a property dividend. The dividend consisted of Land. The land had originally been purchased $40,000. The value of the land on the declaration date is $70,000. What is the first entry that should be recorded related to this dividend?
1- Retained earnings. 70000
Property dividends payable 70000
2- Retained earnings. 70000
Property dividends payable 40000
Gain 30000
3- Land 30000
Retained Earnings 30000
4- Land 30000
Gain on Investments 30000
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Cornerstones of Cost Management
Authors: Don R. Hansen, Maryanne M. Mowen
2nd edition
1111824401, 978-1111824402
