Find which is correct when stock dividend is declared

Assignment Help Financial Accounting
Reference no: EM132518429

Question 1: Davidson Company has 10,000,000 common shares issued and 500,000 shares of treasury stock. The stock's par value is $2 per share and its current market price is $25 per share. Which of the following is correct when a 15% stock dividend is declared and distributed?

A. Retained earnings will decrease $37.5 million.

B. Retained earnings will decrease $35.625 million.

C. Retained earnings will decrease $3 million.

D. Retained earnings will decrease $2.85 million.

E. Retained earnings do not change.

Reference no: EM132518429

Questions Cloud

Developing commands : Amore's and Quesada's article discusses the challenges of incorporating Natural Command Language Dialogs (NCLDs) into a phone system.
COMP7402 Compilers and Interpreters Assignment : COMP7402 Compilers and Interpreters Assignment Help and Solution, University of Queensland - Assessment Writing Service - course Piazza bulletin board
Calculate the explicit-implicit and economic cost for mitzi : Calculate the accounting profit and economic profit for Mitzi's business. Why is it a contradiction to say that a firm is simultaneously earning an economic
ITECH1104 Cloud and Enterprise Computing Assignment : ITECH1104 Cloud and Enterprise Computing Assignment Help and Solution - Federation University, Australia - Assessment Writing Service
Find which is correct when stock dividend is declared : $2 per share and its current market price is $25 per share. Which of the following is correct when a 15% stock dividend is declared and distributed?
Web security verification : Application security does not happen on its own. Organizations must recognize the value of security and make it a priority when developing applications.
How iaas facilitates system redundancy and load balancing : Create a paper that compares and contrasts how IaaS facilitates system redundancy and load balancing. Define and describe how you would use IaaS to facilitate.
Prepare the statement of stockholders equity for power drive : Prepare the statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2021. (Amounts to be deducted should be indicated)
Difference between economic growth and economic development : Discuss the difference between economic growth and economic development with reference to Pakistan

Reviews

Write a Review

Financial Accounting Questions & Answers

  Cost method is used to record treasury stock transactions

Long Co. issued 100000 shares of $10 part common stock for $1200000. A year later Long acquired 12,000 shares of its own common stock at $15 per share. Three months later Long sold 6,000 of these shares at $19 per share. If the cost method is used to..

  How to define and provide numerical illustrations for capm

How to Define and provide numerical illustrations for the CAPM. How to Determine how diversification is important in the formation of the CAPM.

  Claimed as dependent on his parents tax returns

Compute Jason’s taxable income for 2013, assuming that he has $1,000 in wages from working in a grocery store and $2,100 in interest income from some bonds he owns. Jason, age 16, is claimed as a dependent on his parents’ tax returns for 2014.

  Approval of the budget before the commencement

Development of assumptions and plans about the factors influencing next year's budget in advance of the budget year starting - Approval of the budget before the commencement of the budget year;

  Manicures a week on average

At that job he earned $17 for each manicure he did, he worked four days a week for 8.5 hours each day. And he gave 22 manicures a week on average.

  New automobiles

During the current year, Central Auto Rentals purchased 60 new automobiles at a cost of $21,920 per car. The cars will be sold to a wholesaler at an estimated $4,000 each as soon as they have been driven 56,000 miles

  What amount of above payments should geraldo have reported

What amount of the above payments should Geraldo have reported as gross rental income in 2018 and 2019?

  Find what are the projected spontaneous liabilities

Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities?

  Designed to meet the completeness assertion

Which of the following controls is designed to meet the completeness assertion?

  Time value of money concept

The following situations involve the application of the time value of money concept. Use the appropriate present or future value table that may be found by clicking on the Present & Future Values button. Janelle Carter deposited $9,830 in the bank on..

  Cash collections from customers during the period

Corporation uses the indirect method to depict cash flows. Indicate where, if at all, interest paid on note would be classified on the statement of cash flows - what were the cash collections from customers during the period?

  What will the bad debt expense be the month

You are the accountant for the I love Accounting company. You have to perform the month end procedures for the Accounts Receivable and Allowance for Doubtful Account. show the adjusting entry to show the receipt of the previously written off account?..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd