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Find what amount will additional paid-in capital be recorded

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Problem 1: McGee Corporation has 4,000 shares of $30 par value common stock outstanding. If McGee declares a 5% stock dividend on its common stock when the market value is $35 per share, for what amount will 'Additional Paid-in Capital' be recorded?

a. $6,000
b. $5,000
c. $1,000
d. $7,000

Reference no: EM132704649

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