Question: Explain why the accounting for small stock dividends requires that market value, rather than par value, of the shares distributed be charged against retained earnings.

Explain why the accounting for small stock dividends requires that market value, rather than par value, of the shares distributed be charged against retained earnings.

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This SEC release titled Pro Rata Distribution to Shareholders Several instances have come to the attention of the Commission in which registrants have ... View full answer

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Explain why the accounting for small stock dividends requires that market value, rather than par value, of the shares distributed be charged against retained earnings.

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