Fortune, Inc. declares a 10% common stock dividend when it has 20,000 shares of $10 par value common stock outstanding. If the market value of the common stock is $25, the journal entry to record the stock dividend would include a:
A) debit to Retained Earnings $50,000.
B) debit to Retained Earnings $20,000.
C) credit to Paid-in Capital in Excess of Par Value $50,000.
D) credit to Paid-in Capital in Excess of Par Value $20,000
Correct Answer:
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