Question
On 28 February 2024, Xavier Ltd declared and distributed an 8% share dividend (bonus issue). At that date the entity's total share capital was $180
On 28 February 2024, Xavier Ltd declared and distributed an 8% share dividend (bonus issue). At that date the entity's total share capital was $180 000, fully paid to $1. The market price of the shares on 28 February was $1.10. What is the effect of this dividend on Xavier Ltd's total shareholders' equity?
a. No effect
b. Increase of $14 400
c. Decrease of $14 400
d. an increase of $15 840
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Financial accounting
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
8th Edition
9780135114933, 136108865, 978-0136108863
