A corporation with $10 par common stock issues a small stock dividend. The capitalization of retained earnings is equal to: Multiple Choice The par value of the shares to be distributed. The par value of the shares outstanding. The market value of the shares to be distributed. The market value of the shares outstanding. There is no capitalization of retained earnings in the case of a small stock dividend.
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Step 1: The capitalization of retained earnings is the conversion of retained earnings into capital by issuing stock dividends or additional shares. Show more…
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