When a stock dividend is less than 20% of the outstanding shares,generally accepted accounting principles require the stock dividend to be accounted for at its par value.

Question

Quizplus · Accepted Answer

When a stock dividend is less than 20-25% of the outstanding shares, it is considered a small stock dividend and is accounted for at the market value on the declaration date, not the par value.

When a Stock Dividend Is Less Than 20% of the Outstanding