Course Hero Logo

22 lo 3 two alternatives exist once a credit balance

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 5 - 6 out of 24 pages.

_____ 22.(L.O. 3) Two alternatives exist once a credit balance in retained earnings isrecorded. It can be left intact and the offsetting assets used in the operations of thebusiness or it can be:A. reduced by a distribution of assets to the stockholders.B. increased as a result of a sale of common stock above par value.C. increased as a result of a sale of treasury stock at an amount in excess of parvalue.D. reduced by a distribution of assets to creditors.
_____ 23.(L.O. 3) When a corporation declares a property dividend, the corporation should:
_____ 24.(L.O. 3) Mildred Corporation owned 2,000 shares of Lester Corporation. Theseshares were purchased in 2019 for $18,000. On October 15, 2020, Mildreddeclared a property dividend of one share of Lester for every ten shares of Mildredheld by a stockholder. On that date, when the market price of Lester was $14 pershare, there were 18,000 shares of Mildred outstanding. What gain and netreduction in retained earnings would result from this property dividend?
_____ 25.(L.O. 3) A feature common to both stock dividends and stock splits is:

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 24 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
BrettWilkinson
Tags

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture