This comment appeared in the annual report of MacCloud 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...

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

This comment appeared in the annual report of MacCloud Inc.: The Company could pay cash or property

Question:

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

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...