If the stock dividend is less than 20%, how much of the retained earnings should be capitalized?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 11P
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If the stock dividend is less than 20%,
how much of the retained earnings
should be capitalized?
O Par value of the shares
Fair value of the shares on the date of
record
Fair value of the shares on the date of
issuance
Fair value of the shares on the date of
declaration
DK and JUN partnership has income
of P110,000 and Partner DK is to be
allocated a bonus of 10% of income
after the bonus. DK's bonus would be
Your answer
Transcribed Image Text:If the stock dividend is less than 20%, how much of the retained earnings should be capitalized? O Par value of the shares Fair value of the shares on the date of record Fair value of the shares on the date of issuance Fair value of the shares on the date of declaration DK and JUN partnership has income of P110,000 and Partner DK is to be allocated a bonus of 10% of income after the bonus. DK's bonus would be Your answer
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