Question: This comment appeared in the annual report of Mac Cloud Inc.: The Company could pay cash or property dividends on the Class A common stock

This comment appeared in the annual report of Mac Cloud Inc.: “The Company could pay cash or property dividends on the Class A common stock without paying cash or property dividends on the Class B common stock. But if the Company pays any cash or property dividends on the Class B common stock, it would be required to pay at least the same dividend on the Class A common stock.” How is a property dividend accounted for in the financial records?

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A property dividend is a nonreciprocal transfer of nonmonetary assets between an enterprise and its owners A transfer of a nonmonetary asset ... View full answer

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