Bridgeport Corporation owned 15400 shares of Harper Corporation's $5 par value common stock. These shares were purchased 2020 for $326326. On May 4, 2022, Bridgeport declared a property dividend of one share of Harper for every twenty shares of Bridgeport stock held by a stockholder. On that date, when the market price of Harper was $35 per share, there were 308000 sha of Bridgeport outstanding. What net reduction in retained earnings would result from this property dividend? (Round intermediate calculations of cross rate to 2 decimal places e.g. 15.25.) O $539000 O $326326 O $154000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bridgeport Corporation owned 15400 shares of Harper Corporation's $5 par value common stock. These shares were purchased in
2020 for $326326. On May 4, 2022, Bridgeport declared a property dividend of one share of Harper for every twenty shares of
Bridgeport stock held by a stockholder. On that date, when the market price of Harper was $35 per share, there were 308000 shares
of Bridgeport outstanding. What net reduction in retained earnings would result from this property dividend? (Round intermediate
calculations of cross rate to 2 decimal places e.g. 15.25.)
○ $539000
O $326326
○ $154000
O $231000
Transcribed Image Text:Bridgeport Corporation owned 15400 shares of Harper Corporation's $5 par value common stock. These shares were purchased in 2020 for $326326. On May 4, 2022, Bridgeport declared a property dividend of one share of Harper for every twenty shares of Bridgeport stock held by a stockholder. On that date, when the market price of Harper was $35 per share, there were 308000 shares of Bridgeport outstanding. What net reduction in retained earnings would result from this property dividend? (Round intermediate calculations of cross rate to 2 decimal places e.g. 15.25.) ○ $539000 O $326326 ○ $154000 O $231000
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