On January 1, Edmiston Corporation had 1,600,000 shares of $10 par value common stock outstanding. On March 31 the company declared a 10% stock dividend. Market value of the stock was $15/share. As a result of this event,
A) Edmiston's Paid-in Capital in Excess of Par Value account increased $800,000.
B) Edmiston's total stockholders' equity was unaffected.
C) Edmiston's Stock Dividends account increased $2,400,000.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

A stock dividend increases both the common stock and paid-in capital in excess of par value accounts, but total stockholders' equity remains unchanged.

On January 1, Edmiston Corporation Had 1,600,000 Shares of $10