On January 1, 2014, when the market value of their common shares was $20 per share, Belgrade Inc.declared a 10% common stock dividend.Shareholders' equity before the stock dividend was declared was: Common shares, no par value, authorized 200,000 shares,
What was the effect on Belgrade's retained earnings as a result of the stock dividend?
A) $240,000 decrease
B) $400,000 decrease
C) $480,000 decrease
D) $800,000 decrease
Correct Answer:
Verified
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