Stinson Corporation owned 30,000 shares of Matile Corporation.These shares were purchased in 2009 for $270,000.On November 15, 2011, Stinson declared a property dividend of one share of Matile for every ten shares of Stinson held by a shareholder.On that date, when the market price of Matile was $14 per share, there were 270,000 shares of Stinson outstanding.What gain and net reduction in retained earnings would result from this property dividend?

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The Answer of Stinson Corporation owned 30,000 shares of Matile Corporation.These shares were purchased in 2009 for $270,000.On November 15, 2011, Stinson declared a property dividend of one share of Matile for every ten shares of Stinson held by a shareholder.On that date, when the market price of Matile was $14 per share, there were 270,000 shares of Stinson outstanding.What gain and net reduction in retained earnings would result from this property dividend?

Stinson Corporation Owned 30,000 Shares of Matile Corporation