On September 30, Pineville Corporation declared and issued a 10% common stock dividend.Prior to this dividend, Pineville had 50,000 shares of $5 par value common stock issued and outstanding.The fair value of Pineville's common stock was $52 per share on September 30.As a result of this stock dividend, Pineville's total stockholders' equity

Question

Quizplus · Accepted Answer

Stock dividends redistribute a company's existing equity, and the total stockholders' equity does not change. The value of the shares issued as dividends is transferred from retained earnings to paid-in capital, but the total equity remains the same.

On September 30, Pineville Corporation Declared and Issued a 10