All stock dividends are recorded at par value and no paid-in capital in excess of par value is ever recorded.

Name: All stock dividends are recorded at par value and no paid-in capital in excess of par value is ever recorded.
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Question

Quizplus · Accepted Answer

When a company issues stock dividends, the par value of the stock is increased, and any excess of the dividend over the par value is recorded as paid-in capital in excess of par value. Therefore, option A is incorrect, and the correct answer is B.

All Stock Dividends Are Recorded at Par Value and No