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On December 31, 2022 a corporation with $10 par common stock declares a 5% stock dividend. These shares will be distributed on January 20,2023 On
On December 31, 2022 a corporation with $10 par common stock declares a 5% stock dividend.
These shares will be distributed on January 20,2023
On December 31, there are 20,000 shares of common stock issued and outstanding.
The market value per share of the common stock on December 31 is $20 (prior to the stock dividend)
What is the effect on retained earnings on December 31, 2022 of this stock dividend?
a. No change
b. $200,000 increase
c. $20,000 increase
d. $20,000 decrease
e. None of the above
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