A small stock dividend normally results in a transfer from Retained Earnings to Contributed Capital of an amount equal to the par value of the stock.

Name: A small stock dividend normally results in a transfer from Retained Earnings to Contributed Capital of an amount equal to the par value of the stock.
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

A small stock dividend typically results in a transfer from Retained Earnings to Contributed Capital at the market value of the stock, not the par value.

A Small Stock Dividend Normally Results in a Transfer from Retained