The stockholders' equity section of the balance sheet for Potawatomi Corporation appeared as follows before its recent stock dividend:
Potawatomi declared a 10% stock dividend when the market price per share was $20. After the stock dividend was distributed, the components of the stockholders' equity section were:

Question

The stockholders' equity section of the balance sheet for Potawatomi Corporation appeared as follows before its recent stock dividend:
 Potawatomi declared a 10% stock dividend when the market price per share was $20. After the stock dividend was distributed, the components of the stockholders' equity section were:

Quizplus · Accepted Answer

10,000 shares x 10% = 1,000 share stock dividend x $20 = $20,000
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The Stockholders' Equity Section of the Balance Sheet for Potawatomi