A Corporation Should Account for the Declaration of a 10

Multiple Choice

A corporation should account for the declaration of a 10 percent stock dividend by

A) transferring from retained earnings to contributed capital an amount equal to the legal capital represented by the dividend shares.
B) transferring from retained earnings to contributed capital an amount equal to the market value of the dividend shares.
C) transferring from retained earnings to contributed capital whatever amount the board of directors deems appropriate.
D) making only a memorandum entry in the general journal.