3. ABC Company has 100,000 shares of $5 par value stock issued and outstanding. It declares a 15% stock dividend when the stock is worth $100/share. How will retained earnings change as a result of the stock dividend? Group of answer choices 1,500,000 increase 75,000 decrease 15,000 decrease 1,500,000 decrease
3. ABC Company has 100,000 shares of $5 par value stock issued and outstanding. It declares a 15% stock dividend when the stock is worth $100/share. How will retained earnings change as a result of the stock dividend? Group of answer choices 1,500,000 increase 75,000 decrease 15,000 decrease 1,500,000 decrease
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 12RE: Given the following year-end information, compute Greenwood Corporations basic and diluted earnings...
Related questions
Question
3. ABC Company has 100,000 shares of $5 par value stock issued and outstanding. It declares a 15% stock dividend when the stock is worth $100/share. How will retained earnings change as a result of the stock dividend?
Group of answer choices
1,500,000 increase
75,000 decrease
15,000 decrease
1,500,000 decrease
4. ABC Company has 100,000 shares of $5 par value stock issued and outstanding. It declares a 30% stock dividend when the stock is worth $100/share. How will retained earnings change as a result of the stock dividend?
Group of answer choices
30,000 decrease
3,000,000 decrease
150,000 increase
150,000 decrease
5. ABC Company has 100,000 shares of $5 par value stock issued and outstanding. It declares a 2:1 stock split when the stock is worth $100/share. By what amount will retained earnings change?
Group of answer choices
0
10,000,000 decrease
100,000 increase
100,000 decrease
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