When a stock dividend is declared and issued:
A)total paid-in capital does not change.
B)total stockholders' equity does not change.
C)retained earnings is normally decreased by the par value of the shares issued in the dividend.
D)total paid-in capital is decreased by the market value of the shares issued in the dividend.

Question

Quizplus · Accepted Answer

A stock dividend does not change total stockholders' equity; it only transfers amounts within equity from retained earnings to paid-in capital.

When a Stock Dividend Is Declared and Issued