Question: The Matisse Co . declared a 4 0 % stock dividend on its $ 1 . 0 0 par value common stock, of which 9

The Matisse Co. declared a 40% stock dividend on its $1.00 par value common stock, of which 900,000 shares are issued and 800,000 outstanding. As a result of the stock dividend, retained earnings will decrease by $900,000.
Question 11 options:
1)
True.
2)
False.

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