Pierson Corporation owned 10,000 shares of Hunter Corporation.These shares were purchased in 2009 for $90,000.On November 15, 2011, Pierson declared a property dividend of one share of Hunter for every ten shares of Pierson held by a shareholder.On that date, when the market price of Hunter was $14 per share, there were 90,000 shares of Pierson outstanding.What gain and net reduction in retained earnings would result from this property dividend?

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The Answer of Pierson Corporation owned 10,000 shares of Hunter Corporation.These shares were purchased in 2009 for $90,000.On November 15, 2011, Pierson declared a property dividend of one share of Hunter for every ten shares of Pierson held by a shareholder.On that date, when the market price of Hunter was $14 per share, there were 90,000 shares of Pierson outstanding.What gain and net reduction in retained earnings would result from this property dividend?

Pierson Corporation Owned 10,000 Shares of Hunter Corporation