Question
Asked Jan 9, 2020
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Stock splits and stock dividends may be used by a corporation
to change the number of shares of its stock
outstanding.
(a) What is meant by a stock split effected in the form of
a dividend?
(b) From an accounting viewpoint, explain how the
stock split effected in the form of a dividend differs
from an ordinary stock dividend.
(c) How should a stock dividend that has been declared
but not yet issued be classified in a balance sheet?
Why?

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