Stock dividends are accounted for using the fair market value of the shares on the date of declaration.

Name: Stock dividends are accounted for using the fair market value of the shares on the date of declaration.
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Stock dividends are accounted for using the fair market value of the shares on the date of declaration. This is because the shareholder receives additional shares of stock in the company, which have a value based on the current market price at the time the dividend is declared.

Stock Dividends Are Accounted for Using the Fair Market Value