Nice International originally issued 106,000 shares of common stock at a price of $21 per share.A year later,it distributed a 13% stock dividend to shareholders.At the time of the stock dividend,the share price had increased to $24 per share.Which of the following statements is true?

Question

Quizplus · Accepted Answer

Stock dividends do not result in a gain or loss; they are a distribution of additional shares to shareholders and are recorded as a transfer within equity.

Nice International Originally Issued 106,000 Shares of Common Stock at a Price