Under current GAAP a stock dividend declaration and distribution will not reduce either total assets or total owners' equity.

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Under current GAAP, a stock dividend does not reduce total assets or total owners' equity because it is simply a redistribution of shares among existing shareholders. The total value of the company remains the same, but the number of outstanding shares increases, resulting in a decrease in the value per share.

Under Current GAAP a Stock Dividend Declaration and Distribution Will