Instead of Paying a Cash Dividend This Year, More Goanna

Multiple Choice

Instead of paying a cash dividend this year, more Goanna Ltd shares were issued to the existing shareholders of Goanna Ltd out of Goanna Ltd's asset revaluation reserve which accumulates revaluation increments of property, plant and equipment.This action is called:

A) Establishing a sinking fund
B) Capitalisation of reserves
C) Capitalisation of profits
D) Establishing a reserve fund