The stockholders' equity of Anamanda Company at September 30, 2010, is presented below: On October 1, 2010, the Board of Directors of Anamanda declared a 10% stock dividend to be distributed on November 10.The market price of the common stock was $15 on October 1 and $17 on November 10.What is the amount of the charge to retained earnings as a result of the declaration and distribution of this stock dividend?

Question

The stockholders' equity of Anamanda Company at September 30, 2010, is presented below:  On October 1, 2010, the Board of Directors of Anamanda declared a 10% stock dividend to be distributed on November 10.The market price of the common stock was $15 on October 1 and $17 on November 10.What is the amount of the charge to retained earnings as a result of the declaration and distribution of this stock dividend?

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The Answer of The stockholders' equity of Anamanda Company at September 30, 2010, is presented below:  On October 1, 2010, the Board of Directors of Anamanda declared a 10% stock dividend to be distributed on November 10.The market price of the common stock was $15 on October 1 and $17 on November 10.What is the amount of the charge to retained earnings as a result of the declaration and distribution of this stock dividend?

The Stockholders' Equity of Anamanda Company at September 30, 2010