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Quirk Corporation Issued a 100% Share Dividend of Its Ordinary

Question 51

Multiple Choice

Quirk Corporation issued a 100% share dividend of its ordinary shares 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

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