Which of the following occurs when a corporation's board of directors declares a 10% stock dividend? Stock Dividends will be credited for the new shares times the par value of the stock. Stock Dividends will be debited for the new shares times the current market value of the stock. Stock Dividends will be credited for the new shares times the current market value of the stock. Stock Dividends will be debited for the new shares times the par value of the stock.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which of the following occurs when a corporation's board of directors declares a 10% stock dividend?
Stock Dividends will be credited for the new shares times the par value of the stock.
Stock Dividends will be debited for the new shares times the current market value of the stock.
Stock Dividends will be credited for the new shares times the current market value of the stock.
Stock Dividends will be debited for the new shares times the par value of the stock.
Transcribed Image Text:Which of the following occurs when a corporation's board of directors declares a 10% stock dividend? Stock Dividends will be credited for the new shares times the par value of the stock. Stock Dividends will be debited for the new shares times the current market value of the stock. Stock Dividends will be credited for the new shares times the current market value of the stock. Stock Dividends will be debited for the new shares times the par value of the stock.
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