Gilbert Corporation Issued a 40-Percent Stock Dividend of Its Common

Multiple Choice

Gilbert Corporation issued a 40-percent stock dividend of its common stock that had a par value of $10 before and after the dividend. At what amount should retained earnings be capitalized for the additional shares issued?

A) There should be no capitalization of retained earnings
B) Par value
C) Market value on the declaration date
D) Market value on the payment date