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On January 1, 2010, Garner Corp

Question 15

Multiple Choice

On January 1, 2010, Garner Corp. had 10,000 shares of $1 par value common stock issued and outstanding. The stock was selling at $10 per share. During 2010, Garner declared and issued a 10% stock dividend. The stock dividend causes


A) total shareholders' equity to increase by $1,000.
B) net income to decrease by $1,000.
C) earnings per share to decrease by $10,000.
D) no change in total shareholders' equity

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