A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a
2% stock dividend on a date when the market price was $11 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend
Stock dividend is a type of dividend which is paid in the form of additional shares in the company. It is declared as a ratio or percentage of outstanding shareholding in the company.
Stock Dividend = Numbers of outstanding shares x Stock Dividend percentage
A government budget surplus from reduced government spending (no change in net taxes) will increase the level of investment in the economy and increase the level of total saving (private plus public) in the economy
