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