Question
The Equity section of Howell Company at December 31, 2020 is presented below: Share capitalordinary, par value $40, authorized 245,000 shares; issued and outstanding 130,000
The Equity section of Howell Company at December 31, 2020 is presented below: Share capitalordinary, par value $40, authorized 245,000 shares; issued and outstanding 130,000 shares $5,200,000 Share premiumordinary 350,000 Retained Earnings 650,000 $6,200,000 On January 1, 2021, the board of directors of Howell declared a 22% share dividend on ordinary shares, to be issued on 1 February 2021. The market price of Howell's ordinary shares was $45 on January 1, 2021, and $49 on February 1, 2021. Required: Calculate the amount of the decrease or increase to Retained Earnings
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