Question: When a stock dividend is small, for example a 10% stock dividend, Retained earnings is not reduced because the dividend is immaterial Retained earnings is

When a stock dividend is small, for example a 10% stock dividend,

Retained earnings is not reduced because the dividend is immaterial

Retained earnings is reduced by the fair value of the stock

Retained earnings is reduced to the par value of the stock

Paid-in capital in excess of par value is unaffected

The purchase of treasury stock

decreases the number of shares authorized

decreases the number of shares issued

decreases the number of shares outstanding

decreases the number of shares authorized, issued, and outstanding

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