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On January 31, 1988, when the Montana Corporation's stock 7. was selling at $36 per share, its capital accounts were as follows: Capital stock (par

On January 31, 1988, when the Montana Corporation's stock 7. was selling at $36 per share, its capital accounts were as follows:

Capital stock (par value $20; 100,000 shares issued) $2,000,000

Premium on Capital Stock 800,000

Retained Earnings 4,550,000

If the corporation declares a 100% stock dividend and the par value per share remains at $20, the value of the capital stock would

A. remain the same

B. increase to $5,600,000

C. increase to $5,000,000

D. decrease

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