Large stock dividends are recorded at ______ and small stock dividends are recorded at ______.
A) cost; par value
B) par value; market value
C) par value; par value
D) cost; cost

Question

Quizplus · Accepted Answer

Small stock dividends are recorded at par value because they are not considered to be a significant change in the ownership of the company. Large stock dividends are recorded at cost because they are considered to be a significant change in the ownership of the company.

Large Stock Dividends Are Recorded at ______ and Small Stock