Multiple Choice
Assume a firm has declared a 20% stock dividend on its 1 million shares of outstanding $5 par value common stock. If the market value of the stock at the date of the stock dividend is $14 per share and the retained earnings account balance before the stock dividend was $7,600,000, what is the retained earnings account balance after the stock dividend?
A) $3,600,000
B) $1,960,240
C) $7,600,000
D) $4,800,000
Correct Answer:
Verified
Correct Answer:
Verified
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