Question

The directors of Lenox Corporation are considering issuing a stock dividend.
Required:
a. What is a stock dividend? How is a stock dividend distinguished from a stock split from a legal standpoint? From an accounting standpoint?
b. For what reasons does a corporation usually declare a stock dividend? A stock split?
c. Discuss the amount, if any, of retained earnings to be capitalized in connection with a stock dividend.



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  • CreatedDecember 17, 2014
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