On January 1, McCarver Corporation had 800,000 shares of $10 par value common stock outstanding.On March 31, the company declared a 10% stock dividend.The market value of the stock was $15/share.As a result of this event,
A)McCarver's Paid-in Capital in Excess of Par Value account increased $400,000.
B)McCarver's total stockholders' equity was unaffected.
C)McCarver's Stock Dividends account increased $1,200,000.
D)All of these answer choices are correct.

Question

Quizplus · Accepted Answer

The stock dividend increases the number of shares outstanding, but not the total stockholders' equity. The Paid-in Capital in Excess of Par Value account is increased by the market value of the stock dividend, which is $1,200,000.

On January 1, McCarver Corporation Had 800,000 Shares of $10