Habricate recently declared a 10% share dividend.As of the date of the announcement, Habricate had 10 million shares outstanding which were selling on the New York Stock Exchange (NYSE)for $50 per share.An accounting entry is required on the balance sheet in order to transfer an amount from retained earnings to the common share and additional paid-in capital accounts.What is the dollar amount of retained earnings that will be transferred from retained earnings to the common share account as the result of the share dividend? Assume that the par value of Habricate is $2 per share.
A)$2 million
B)$50 million
C)$45.45 million
D)$12.5 million

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The Answer of Habricate recently declared a 10% share dividend.As of the date of the announcement, Habricate had 10 million shares outstanding which were selling on the New York Stock Exchange (NYSE)for $50 per share.An accounting entry is required on the balance sheet in order to transfer an amount from retained earnings to the common share and additional paid-in capital accounts.What is the dollar amount of retained earnings that will be transferred from retained earnings to the common share account as the result of the share dividend? Assume that the par value of Habricate is $2 per share.
A)$2 million
B)$50 million
C)$45.45 million
D)$12.5 million

Habricate Recently Declared a 10% Share Dividend