Quirk Corporation Issued a 100% Stock Dividend of Its Common

Multiple Choice

Quirk Corporation issued a 100% stock dividend of its common stock which 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) Fair value on the declaration date
D) Fair value on the payment date