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King Ltd Declared and Distributed a 12% Share Dividend (Bonus

Question 48

Multiple Choice

King Ltd declared and distributed a 12% share dividend (bonus issue) when share capital was $380 000. What is the effect on total shareholders' equity?


A) $45 600 increase
B) It depends on the price of the bonus issue
C) No effect
D) $45 600 decrease

Correct Answer:

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