Item 24

Item 24

24. ABC declared a property dividend. The dividend consisted of 10,000 common shares of its investment in XYZ Company. The shares had originally been purchased at $1 per share and had a $1 par. The value of the shares on the declaration date is $6 per share. What is the first entry that should be recorded related to this dividend?

25. On October 1, 2021, Chief Corporation declared and issued a 6% stock dividend. Before this date, Chief had 80,000 shares of $5 par common stock outstanding. The market price of Chief Corporation on the date of declaration was $10 per share. As a result of this dividend, Chief's retained earnings will: