Why is Additional Paid-In Capital recorded for a small stock dividend?
A)Because small stock dividends are recorded at market value.
B)Because large stock dividends are recorded at par value.
C)Because small stock dividends are recorded at par value.
D)Because large stock dividends are recorded at market value.

Question

Quizplus · Accepted Answer

Because a small stock dividend is recorded at market value,Additional Paid-In Capital is used to report the amount by which the market value of the stock issued exceeds its par value.

Why Is Additional Paid-In Capital Recorded for a Small Stock