A corporation with $10 par common stock issues a small stock dividend. The capitalization of retained earnings is equal to:
A) The par value of the shares outstanding.
B) The par value of the shares to be distributed.
C) There is no capitalization of retained earnings in the case of a small stock dividend.
D) The market value of the shares outstanding.
E) The market value of the shares to be distributed.
Correct Answer:
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