A property dividend causes a debit to retained earnings equal to the ___________ of the property distributed.

Question

Quizplus · Accepted Answer

A property dividend is recorded at fair market value, which is the value of the property on the distribution date. Since the property is distributed to shareholders, it is considered a distribution of earnings and a debit must be made to retained earnings for the fair market value of the property.

A Property Dividend Causes a Debit to Retained Earnings Equal