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Murton Industries Murton Industries, Inc. Reported the Following Information on Its Recent

Question 66

Multiple Choice

Murton Industries
Murton Industries, Inc. reported the following information on its recent balance sheet.
Common stock, $10 par, 100,000 shares authorized, 75,000 shares issued and outstanding
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Refer to the information for Murton Industries. What is the effect of a 10% stock dividend if the market price of the common stock is $30 per share when the stock dividend is declared?


A) A stock dividend has no impact on any of the stockholders' equity accounts.
B) Total stockholders' equity increases $75,000.
C) Cash increases $300,000.
D) Retained earnings decreases by $225,000.

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