On September 15, 2024, Kelp Company’s board of directors declared an 8% stock dividend on common shares. The shares are to be distributed on October 10, 2024, to shareholders of record on October 1, 2024. The market price per share on the date of declaration was $23.5 while the market price on the date of distribution was $25.5. The common stock has a par of $5 per share and there were 1,750,000 shares outstanding prior to the declaration of the stock dividend.

What is the impact of the stock dividend on retained earnings? Provide a dollar amount and, if non-zero, circle increase or decrease.

$_____________ Increase Decrease

Answer rating: 100% (QA)

Step 11 8 stock dividend on 1750000 shares outstanding ... View the full answer