Bell Company has 2 million shares of common stock with par of $10. Additional paid- in...

  

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Bell Company has 2 million shares of common stock with par of $10. Additional paid- in capital totals $15 million, and retained earnings is $15 million. The directors declare a 5% stock dividend when the market value is $10. The reduction of retained earnings as a result of the declaration will be 1. $0. 2. $1 million. 3. $800,000. 4. $600,000. 5. None of the above. Bell Company has 2 million shares of common stock with par of $10. Additional paid- in capital totals $15 million, and retained earnings is $15 million. The directors declare a 5% stock dividend when the market value is $10. The reduction of retained earnings as a result of the declaration will be 1. $0. 2. $1 million. 3. $800,000. 4. $600,000. 5. None of the above.

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