Question 33

On January 1, 2020, MJE, Inc., declared a 15% share dividend on its common share when the fair value of the common share was P 20 per share. Shareholders' equity before the share dividend was declared consisted of: Common share, P 10 par value, authorized 200,000 shares; issued and outstanding 120,000 shares 1,200,000 Additional paid-in capital on common share 150,000 Retained earnings 700,000 Total Shareholders' Equity 2,050,000 What was the effect on MJE's retained earnings as a result of the above transaction