Which of the following occurs when a corporation's board of directors declares a 10% stock dividend? A. Stock Dividends will be debited for the new shares times the current market value of the stock. B. Stock Dividends will be credited for the new shares times the current market value of the stock. C. Stock Dividends will be credited for the new shares times the par value of the stock. D. Stock Dividends will be debited for the new shares times the par value of the stock.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 12MC: A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting...
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Which of the following occurs when a corporation's board of directors declares a 10% stock dividend?
A. Stock Dividends will be debited for the new shares times the current market value of the stock.
B. Stock Dividends will be credited for the new shares times the current market value of the stock.
C. Stock Dividends will be credited for the new shares times the par value of the stock.
D. Stock Dividends will be debited for the new shares times the par value of the stock.
Transcribed Image Text:Which of the following occurs when a corporation's board of directors declares a 10% stock dividend? A. Stock Dividends will be debited for the new shares times the current market value of the stock. B. Stock Dividends will be credited for the new shares times the current market value of the stock. C. Stock Dividends will be credited for the new shares times the par value of the stock. D. Stock Dividends will be debited for the new shares times the par value of the stock.
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