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A Large Stock Dividend

Question 56

Multiple Choice
A large stock dividend:

A large stock dividend:


A) reduces retained earnings by the total market value of the issued shares.
B) reduces the par value per share.
C) reduces retained earnings by the par value of each share issued.
D) increases the capital in excess of par value by the market value minus the par value of each share issued.
E) does not affect the equity accounts or the par value per share.

Correct Answer:

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