Arthur's Pass Inc. has 200,000 common shares outstanding, each selling at a market price of $12. The par (book) value of its common shares is $2 per share. The firm currently has retained earnings of $800,000 on its statement of financial position. If the firm declares a 30% stock dividend, what will be the amount shown for retained earnings on the statement of financial position?

Answer rating: 100% (QA)

A stock dividend is a distribution of additional shares to existing shareholders in proportion to th... View the full answer