Quirk Corporation issued a 100% stock dividend of its common stock which had a par value of
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Question:
Quirk Corporation issued a 100% stock dividend of its common stock which had a par value of $10 before and after the dividend. At what amount should retained earnings be capitalized for the additional shares issued?
Fair value on the declaration date
Fair value on the payment date
Par value
There should be no capitalization of retained earnings
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