Question
Elm Company is authorized to issue 500,000 shares of $40 par value common stock. By March 15, 2016, the company had issued 120,000 shares at
Elm Company is authorized to issue 500,000 shares of $40 par value common stock. By March 15, 2016, the company had issued 120,000 shares at $64 per share. On March 15, 2016, the company declared a 5% stock dividend when the market price was $60 per share. What amount is transferred from retained earnings to paid-in capital as a result of the stock dividend?
| A. | $900,000 | |
| B. | $240,000 | |
| C. | $360,000 | |
| D. | $600,000 |
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Operational Review Maximum Results At Efficient Costs
Authors: Rob Reider
3rd Edition
0471228109, 978-0471228103
