Tutu Corp issues an 8% stock dividend to shareholders of record on July 8 at a time when the market price of the stock was $14 and although the shares were no par value, all 11,000,000 shares had been issued at $12.

Multiple Choice

a. Tutu would use the $14 and not the $12 as the basis for making its journal entries

b. Choices a, b and c are all correct statements

c. Tutu would debit Retained Earnings on the date of declaration

d. Tutu would credit Stock Dividends on the date of declaration

e. Choices a, b and c are all incorrect statements