Question

A property dividend should be recorded in retained earnings at the property'sBook value at date of issuance (payment).Market value at date of issuance (payment).Market value at date of declaration.Book value at date of declaration.

Answer 1

Answer: A property dividend should be recorded in retained earnings at the "Market value at date of declaration."

Explanation: The declaration date is the date on which the company agrees to pay the dividend so the market value at that time is the value that was taken into consideration when the meeting of partners decided to distribute the dividends.

Therefore the "Market value at date of declaration." It is the value that most reflects the economic reality of the company.