Boxer Company owned 20,000 shares of King Company that were purchased in 2014 for $500,000.On May 1,2016,Boxer declared a property dividend of 1 share of King for every 10 shares of Boxer stock.On that date,there were 50,000 shares of Boxer stock outstanding.The market value of the King stock was $30 per share on the date of declaration and $32 per share on the date of distribution.By how much is retained earnings reduced by the property dividend?
A) $0.
B) $150,000.
C) $160,000.
D) $300,000.
Correct Answer:
Verified
Q66: When preferred stock is purchased by the
Q69: When treasury shares are sold at a
Q74: Preferred stock is called preferred because it
Q75: Retained earnings represent a company's:
A) Undistributed net
Q76: When treasury shares are resold at a
Q77: Which of the following statements is true
Q78: Retained earnings represent:
A) Earned capital.
B) Cash.
C) Assets.
D)
Q82: Lucid Company declared a property dividend of
Q86: R Co. has outstanding 100 million shares,
Q140: Revenue and expense items and components of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents