1. On January 1, 2021, Aeropagus Company has P4,970,800 share capital, P6,780,00 share premium and P5,800,00 Retained earnings. During the year the company declared a 5% stock dividend on 115,600 issued and outstanding shares of P43 par value, which had a fair value of P50 pee share before the stock dividend was declared. This stock dividend was distributed 60 days after declaration date. How much is the increased in current liabilities as a result of the stock dividend declaration? How much is the share capital of Aeropagus Company after the stock dividend was distributed?

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A:

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A:

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A:

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.