A small stock dividend normally results in a transfer from Retained Earnings to Contributed Capital of an amount equal to the market value of the stock.

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A small stock dividend is a distribution of additional shares of stock to existing shareholders. The transfer typically occurs from Retained Earnings to Contributed Capital, and the amount transferred is equal to the market value of the shares being distributed. This is because a stock dividend does not result in any cash inflows or outflows, so the company's total equity remains the same, but the allocation between Retained Earnings and Contributed Capital changes.

A Small Stock Dividend Normally Results in a Transfer from Retained