The stockholders' equity section of the balance sheet immediately before a recent stock dividend is provided below:
A 10% stock dividend was declared and paid when the market price per share was $12. Immediately after the stock dividend, the components of stockholders' equity section were:
Common Stock Paid-in Capital Retained Earnings
A) $620,000 $100,000 $605,000
B) $550,000 $170,000 $725,000
C) $620,000 $100,000 $725,000
D) $550,000 $170,000 $605,000
Correct Answer:
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