Butler Corporation declared and issued a 8% stock dividend on December 1. Prior to the declaration, Butler's retained earnings were $735,000, shares outstanding were 62,000, $5 par value, common stock with a current market value of $16 per share. As a result of recording this stock dividend total stockholders' equity will increase (decrease)by:

Question

Quizplus · Accepted Answer

The total stockholders' equity does not change as a result of a stock dividend. The value is merely transferred from retained earnings to common stock and possibly additional paid-in capital, maintaining the total equity.

Butler Corporation Declared and Issued a 8% Stock Dividend on December