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Bonita Industries owned 909000 shares of Carla Vista Co. stock. On December 31, 2021, when Bonita's account Equity Investments (Carla Vista Co.) had a
Bonita Industries owned 909000 shares of Carla Vista Co. stock. On December 31, 2021, when Bonita's account "Equity Investments (Carla Vista Co.") had a carrying value of $5 per share, Bonita distributed these shares to its stockholders as a dividend. Bonita originally paid $8 for each share. Carla Vista has 5080000 shares issued and outstanding, which are traded on a national stock exchange. The quoted market price for a Carla Vista share was $7 on the declaration date and $9 on the distribution date. What would be the reduction in Bonita's stockholders' equity as a result of the above transactions? O $4545000 O $3636000 $8181000 $7272000
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