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Step2247 [10]
3 years ago
12

A company with 108,000 authorized shares of $4 par common stock issued 33,000 shares at $12. Subsequently, the company declared

a 2% stock dividend on a date when the market price was $31 per share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?
Business
1 answer:
liq [111]3 years ago
8 0

Answer:

$20,460

Explanation:

Data provided as per the question below:-

Common stock = 33,000 shares

Market price per share = $31

Stock dividend percentage = 2%

The computation of stock dividend is shown below:-

Price per share = Common stock × Market price per share

= 33,000 × $31

= $1,023,000

Stock dividend = Price per share × Stock dividend percentage

= $1,023,000 × 2%

= $20,460

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<em><u>In store promotion</u></em>

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Ilia_Sergeevich [38]

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2 years ago
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