Dividends payable in noncash asset shall be charged to retained earnings at a. Cost or book value
Question:
Dividends payable in noncash asset shall be charged to retained earnings at
a. Cost or book value of the noncash assetb. Fair value of the noncash asset
c. Fair value as determined by Board of Directorsd. Appraised value
____3. When shareholders may elect receive cash in lieu of stock dividend, the amount to be charged to retained earnings is equal to the
a. Optional cash dividendb. Fair value of the shares
c. Par value of the sharesd. Book value of the shares
___4. Treasury shares may be reissued as dividends, in which case what amount shall be charged to retained earnings?
a. Cost of the treasury stockb. Par value of the treasury stock
c. Fair value of the treasury on the date of declaration
d. Fair value of the treasury stock on the date of issuance
___5. If the stock dividend is less than 20%, how much of the retained earnings shall be capitalized?
a.Par value of the shares b. Fair value of the shares on the date of declaration
c.Fair value of the shares on the date of record
d.Fair value of the shares on the date of issuance