Josh's,Inc.has 7,000 shares of stock outstanding with a par value of $1.00 per share and a market value of $32 a share.The balance sheet shows $82,000 in the capital in excess of par account,$7,000 in the common stock account,and $64,800 in the retained earnings account.The firm just announced a 10 percent stock dividend.What is the value of the capital in excess of par account after the dividend?
A)$76,000
B)$82,000
C)$97,700
D)$103,700
E)$104,400

Question

Quizplus · Accepted Answer

Change in capital in excess of par = (7,000 shares × 0.10) × ($32 - $1) = $21,700New capital in excess of par account balance = $82,000 + $21,700 = $103,700