Small stock dividends are recorded at market value.

Name: Small stock dividends are recorded at market value.
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Question

Quizplus · Accepted Answer

Small stock dividends (usually less than 20-25% of the existing shares) are recorded at the market value of the shares on the date of declaration because they have a more significant effect on the market price per share and represent a distribution of value rather than a mere capitalization of retained earnings.

Small Stock Dividends Are Recorded at Market Value