A Corporation with $10 Par Common Stock Issues a Small

Multiple Choice

A corporation with $10 par common stock issues a small stock dividend.The capitalization of retained earnings is equal to:

A) The par value of the shares to be distributed.
B) The par value of the shares outstanding.
C) The market value of the shares to be distributed.
D) The market value of the shares outstanding.
E) There is no capitalization of retained earnings in the case of a small stock dividend.