When a small (under 10%)stock dividend is declared,the market value of the stock is transferred from Retained Earnings into other stockholder equity accounts.

Question

Quizplus · Accepted Answer

When a small stock dividend (under 10%) is declared, the market value of the stock is indeed transferred from Retained Earnings to other stockholder equity accounts, specifically to Common Stock and possibly Additional Paid-In Capital, reflecting the distribution of additional shares to shareholders without changing the total shareholders' equity.

When a Small (Under 10%)stock Dividend Is Declared,the Market Value