A Declaration and Distribution of a 20 Percent Stock Dividend

A corporation had 50,000 shares of $20 par value common stock outstanding on November 1 with no preferred stock issued or outstanding.The company's retained earnings was $200,000 and total stockholders' equity was $500,000.Later that day,the board declared a 10% stock dividend when the market value of each share was $25.Shortly after declaration,the market value fell to $22.50 per share.Sam Lewis owned 200 shares of stock prior to the declaration.After the stock dividend,the total book value of Lewis' stock after receiving additional shares was: A) $1,000. B) $2,000. C) $4,500. D) $5,000.

A corporation reported a net income of $90,000 for its fiscal year and declared and paid cash dividends of $60,000.A stock dividend recorded at $30,000 was also distributed during the year.If the beginning balance of the Retained Earnings account was $140,000,the ending balance is A) $230,000. B) $170,000. C) $140,000. D) $130,000.