A corporation declared and issued a 15% stock dividend on November 1.The following information was available immediately prior to the dividend:
The amount that contributed capital will increase (decrease)as a result of recording this stock dividend is:
A)$45,000.
B)$135,000.
C)$(45,000).
D)$(135,000).
E)$0.

Question

A corporation declared and issued a 15% stock dividend on November 1.The following information was available immediately prior to the dividend:
 The amount that contributed capital will increase (decrease)as a result of recording this stock dividend is:
A)$45,000. 
B)$135,000. 
C)$(45,000). 
D)$(135,000). 
E)$0.

Quizplus · Accepted Answer

60,000 shares * 0.15 = 9,000 * $15 = $135,000

A Corporation Declared and Issued a 15% Stock Dividend on November