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On January 1, 2014, Dodd, Inc

Question 91

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On January 1, 2014, Dodd, Inc., declared a 15% stock dividend on its common stock when the fair value of the common stock was $30 per share. Stockholders' equity before the stock dividend was declared consisted of: On January 1, 2014, Dodd, Inc., declared a 15% stock dividend on its common stock when the fair value of the common stock was $30 per share. Stockholders' equity before the stock dividend was declared consisted of: What was the effect on Dodd's retained earnings as a result of the above transaction? A) $270,000 decrease B) $540,000 decrease C) $900,000 decrease D) $450,000 decrease What was the effect on Dodd's retained earnings as a result of the above transaction?


A) $270,000 decrease
B) $540,000 decrease
C) $900,000 decrease
D) $450,000 decrease

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