The directors of Amman Corporation are considering the issuance of a stock dividend. They have asked you

Question:

The directors of Amman are considering the issuance of a stock They have asked you to discuss the proposed action by answering the following questions.

Instructions
(a) What is a stock How is a stock distinguished from a stock split
(1) From a legal standpoint, and
(2) From an accounting standpoint?
(b) For what reasons does a usually declare a stock A stock split?
(c) Discuss the amount, if any, of retained earnings to be capitalized in connection with a stock Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...