Question: Instead of the usual cash dividend, Evie Corp. declared and distributed a property dividend from its overstocked merchandise. The excess of the merchandises carrying amount

Instead of the usual cash dividend, Evie Corp. declared and distributed a property dividend from its overstocked merchandise. The excess of the merchandise’s carrying amount over its market value should be

a. Ignored.

b. Reported as a separately disclosed reduction of retained earnings.

c. Reported as an extraordinary loss, net of income taxes.

d. Reported as a reduction in income before extraordinary items.

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