Despot declared a property dividend to give marketable securities to its common stockholders. The securities had cost Despot $7 million and currently have a fair value of $16 million. Which of the following would be included in recording the property dividend declaration?
A)Increase in a liability for $16 million.
B)Decrease in retained earnings for $7 million.
C)Decrease in marketable securities by $16 million.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The Answer of Despot declared a property dividend to give marketable securities to its common stockholders. The securities had cost Despot $7 million and currently have a fair value of $16 million. Which of the following would be included in recording the property dividend declaration?
A)Increase in a liability for $16 million.
B)Decrease in retained earnings for $7 million.
C)Decrease in marketable securities by $16 million.
D)All of the above are correct.

Despot Declared a Property Dividend to Give Marketable Securities to Its