Jalisco, Incorporated, had issued and outstanding 250,000 shares of $8 par value common stock at January 1, Year 1 with a retained earnings balance of $750,000. Jalisco issued a 12% stock dividend to its common shareholders. At the time of the dividend the market value of the stock was $17 per share.Required:What is the total dollar amount of the stock dividend? How many shares are outstanding after the stock dividend?

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The Answer of Jalisco, Incorporated, had issued and outstanding 250,000 shares of $8 par value common stock at January 1, Year 1 with a retained earnings balance of $750,000. Jalisco issued a 12% stock dividend to its common shareholders. At the time of the dividend the market value of the stock was $17 per share.Required:What is the total dollar amount of the stock dividend? How many shares are outstanding after the stock dividend?

Jalisco, Incorporated, Had Issued and Outstanding 250,000 Shares of $8