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