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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

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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