Quirk Corporation issued a 3-for-2 stock split of its common stock which had a par value of $10 before the dividend. At what amount should retained earnings be capitalized for the additional shares issued? a) Par value b) Fair value on the declaration date c) Fair value on the payment date d) There should be no capitalization of retained earnings.

Quirk Corporation issued a 3-for-2 stock split of its common stock which had a par value of $10 before the dividend. At what amount should retained earnings be capitalized for the additional shares issued? a) Par value b) Fair value on the declaration date c) Fair value on the payment date d) There should be no capitalization of retained earnings.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 4RE: Use the same facts as in RE 16-3, but instead assume that Pickens declares and issues a 50% stock...

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