McCaffrey Corporation owned 15,000 shares of Harper Corporations $5 par value common stock. These shares were purchased
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Question:
McCaffrey Corporation owned 15,000 shares of Harper Corporation’s $5 par value common stock. These shares were purchased in 2010 for $326,000. On May 4, 2014, McCaffrey declared a property dividend of one share of Harper for every twenty shares of McCaffrey stock held by a stockholder. On that date, when the market price of Harper was $34 per share, there were 280,000 shares of McCaffrey outstanding. What net reduction in retained earnings would result from this property dividend?
| a. | $476,000 |
| b. | $176,000 |
| c. | $304,267 |
| d. | $150,000 |
Expert Answer:
Net reduction in retained earnings would result from this property dividend 304267 work... View the full answer
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