EI Toro Manufacturing Inc. declared a 20% share dividend when it had 150,000 ordinary shares (€5 par value) outstanding. The market price per share was €8 on the declaration date. The entry to record the dividend declaration included a credit to

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The entry to record the dividend declaration includes a credit to Ordinary Share Dividends Distributable for the par value of the additional shares to be issued, which is 20% of 150,000 shares at €5 par value, totaling €150,000.