2. Boxer Company owned 20,000 shares of King Company that were purchased in 2020 for $500,000....
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2. Boxer Company owned 20,000 shares of King Company that were purchased in 2020 for $500,000. On May 1, 2022, Boxer declared a property dividend of I share of King for every 10 shares of Boxer stock. On that date, there were 50,000 shares of Boxer stock outstanding. The market Price of the King stock was $30 per share on the date of declaration and $32 per share on the date of distribution. By how much is retained earnings reduced by the property dividend? a. $0. b. $150,000. c. $160,000. d. $300,000. 2. Boxer Company owned 20,000 shares of King Company that were purchased in 2020 for $500,000. On May 1, 2022, Boxer declared a property dividend of I share of King for every 10 shares of Boxer stock. On that date, there were 50,000 shares of Boxer stock outstanding. The market Price of the King stock was $30 per share on the date of declaration and $32 per share on the date of distribution. By how much is retained earnings reduced by the property dividend? a. $0. b. $150,000. c. $160,000. d. $300,000.
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Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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