Question

A corporation declared a stock dividend on November 1 and issued 9,000 shares of stock to its stockholders. Prior to the dividend, the balance in Retained Earnings was $850,000, the number of shares of $5 par value stock issued and outstanding was 60,000, and the market value of the stock was $12. This stock dividend will cause total stockholders equity to:

A) remain unchanged.

B) increase by $45,000.

C) decrease by $108,000.

D) decrease by $63,000.

Answer

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