All stock dividends are recorded at par value so there would never be a credit to the paid-in capital in excess of par value account.

Question

Quizplus · Accepted Answer

Stock dividends can have a value greater than the par value and any excess value over the par value is recorded in the paid-in capital in excess of par value account. Therefore, there may be a credit to the paid-in capital in excess of par value account.

All Stock Dividends Are Recorded at Par Value So There