Stock splits and stock dividends may be used by a corporation to change the number of shares
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Stock splits and stock dividends may be used by a corporation to change the number of shares of its stock outstanding.
(a) What is meant by a stock split effected in the form of a dividend?
(b) From an accounting viewpoint, explain how the stock split effected in the form of a dividend differs from an ordinary stock dividend.
(c) How should a stock dividend that has been declared but not yet issued be classified in a balance sheet? Why?
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a A stock split effected in the form of a dividend is a stock split in which each existing sharehold...View the full answer
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