22 lo 3 two alternatives exist once a credit balance

_____ 22. (L.O. 3) Two alternatives exist once a credit balance in retained earnings is
recorded. It can be left intact and the offsetting assets used in the operations of the
business 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 par
value.
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. These
shares were purchased in 2019 for $18,000. On October 15, 2020, Mildred
declared a property dividend of one share of Lester for every ten shares of Mildred
held by a stockholder. On that date, when the market price of Lester was $14 per
share, there were 18,000 shares of Mildred outstanding. What gain and net
reduction in retained earnings would result from this property dividend?
_____ 25. (L.O. 3) A feature common to both stock dividends and stock splits is: