Question
On October 1, 2021, Chief Corporation declared and issued a 8% stock dividend. Before this date, Chief had 75,000 shares of $5 par common stock
On October 1, 2021, Chief Corporation declared and issued a 8% stock dividend. Before this date, Chief had 75,000 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:
Multiple Choice
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Decrease by $62,000.
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Increase by $60,000.
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Decrease by $60,000.
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Not change.
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
