PART I. Multiple-choice Problems (3 points each) 1. On May 1, 2022, Ziek Corp. declared and...
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PART I. Multiple-choice Problems (3 points each) 1. On May 1, 2022, Ziek Corp. declared and issued a 10% common stock dividend. Prior to this dividend, Zick had 200,000 shares of $1 par value common stock issued and outstanding. The fair value of Ziek 's common stock was $25 per share on May 1, 2022. As a result of this stock dividend, Ziek's total stockholders' equity a. increased by $500,000. b. decreased by $500,000. c. decreased by $25,000. d. did not change. PART I. Multiple-choice Problems (3 points each) 1. On May 1, 2022, Ziek Corp. declared and issued a 10% common stock dividend. Prior to this dividend, Zick had 200,000 shares of $1 par value common stock issued and outstanding. The fair value of Ziek 's common stock was $25 per share on May 1, 2022. As a result of this stock dividend, Ziek's total stockholders' equity a. increased by $500,000. b. decreased by $500,000. c. decreased by $25,000. d. did not change.
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D Did not change is the correct alternative Explanation When stock dividend is less than 20 it is te... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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