On 28 February 2020, Xavier Ltd declared and distributed an 8% share dividend (bonus issue) . At that date the entity's total share capital was $180 000, fully paid to $1. What is the effect of this dividend on Xavier Ltd's total shareholders' equity?
A) No effect.
B) Decrease of $14 400.
C) Increase of $14 400.
D) It depends on the current market value of the shares.
Correct Answer:
Verified
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