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

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

Section: Chapter Questions

Problem 1Q

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Boxer Company owned 20,000 shares of King Company that were purchased in 2016 for $500,000O. On May 1, 2018, Boxer declared a property dividend of 1 share of King for every 10 shares of Boxer stock. On that date, there were 50,000 shares of Boxer stock outstanding. The market value of the King stock was $30 per share on the date of declaration and $32 per share on the date of distribution. By how much is retained earnings reduced by the property dividend?
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Please include each step of calculation for my reference. Thanks a lot.
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