A company declares a 5% stock dividend. The debit to Retained Earnings is an amount equal to

Question:

a. The market value of the shares to be issued.

b. The par value of the shares to be issued.

c. The book value of the shares to be issued.

d. The excess of the market price over the original issue price of the shares to be issued.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...

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