Item6
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Time Remaining 1 hour 19 minutes 59 seconds
01:19:59
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Item 6
Time Remaining 1 hour 19 minutes 59 seconds
01:19:59
Blaylock Industries declared and distributed a 10% stock dividend on 40,000 shares of issued and outstanding $5 par value common stock. The market price per share was $9 on the declaration date. Which of the following correctly describes the effect of accounting for the declaration and distribution of the stock dividend?
Multiple Choice
Retained earnings decreased $20,000.
Common stock increased $2,000.
Retained earnings decreased $16,000.
Additional paid-in capital increased $16,000.