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-Refer to Lakeshore Industries

Question 33

Multiple Choice

-Refer to Lakeshore Industries. What is the effect of a 10% stock dividend if the market price of the common stock is $30 per share when the stock dividend is declared? A) A stock dividend has no impact on any of the stockholders' equity accounts. B) Total stockholders' equity increases $75,000. C) Cash increases $300,000. D) $225,000 of retained earnings is transferred to the capital stock accounts.
-Refer to Lakeshore Industries. What is the effect of a 10% stock dividend if the market price of the common stock is $30 per share when the stock dividend is declared?


A) A stock dividend has no impact on any of the stockholders' equity accounts.
B) Total stockholders' equity increases $75,000.
C) Cash increases $300,000.
D) $225,000 of retained earnings is transferred to the capital stock accounts.

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