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external reporting

Navas 28 April 2020 at 15:02 PM

Which one of the following is true regarding small stock dividends?
A) Each common shareholder's percentage of ownership in the corporation increases.
B) Retained earnings equal to the par value of shares issued is converted to contributed capital.
C) The amount of equity capital available for future dividends is increased.
D) An amount equal to the current fair value of shares issued is transferred from retained earnings to contributed capital.

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FACULTY 19 May 2020 at 03:35 PM

An amount equal to the current fair value of shares issued is transferred from retained earnings to contributed capital.(option D)

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