Reference no: EM132794139
Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 500,000 shares of $6 par value common stock. As of December 30, Year 1, Gilligan's stockholders' equity accounts report the following balances:
Common stock, $6 par, 500,000 shares authorized 57,500 shares issued and outstanding $ 345,000
Paid-in capital in excess of par - Common 460,000 $ 805,000
Retained earnings 1,415,000
Total Stockholders' Equity $ 2,220,000
On December 31, Year 1, Gilligan decides to issue a 5% stock dividend. At the time of issue, the market price of the stock was $27 per share.
Problem 1: What is the dollar value of the stock dividend issued by Gilligan Corporation?
Option 1: $17,250
Option 2: $111,000
Option 3: $77,625
Option 4: $46,000