On January 1, 2020, when the market value of their common shares was $ 15 per share, Crooks Inc. declared a 10% common stock dividend. Shareholders' equity before the stock dividend was declared was: Common shares, no par value, authorized 300,000 shares, What was the effect on Crook's retained earnings as a result of the stock dividend?
A) $ 270,000 decrease
B) $ 450,000 decrease
C) $ 540,000 decrease
D) $ 750,000 decrease

Question

On January 1, 2020, when the market value of their common shares was $ 15 per share, Crooks Inc. declared a 10% common stock dividend. Shareholders' equity before the stock dividend was declared was: Common shares, no par value, authorized 300,000 shares,  What was the effect on Crook's retained earnings as a result of the stock dividend?
A) $ 270,000 decrease 
B) $ 450,000 decrease 
C) $ 540,000 decrease 
D) $ 750,000 decrease

Quizplus · Accepted Answer

The Answer of On January 1, 2020, when the market value of their common shares was $ 15 per share, Crooks Inc. declared a 10% common stock dividend. Shareholders' equity before the stock dividend was declared was: Common shares, no par value, authorized 300,000 shares,  What was the effect on Crook's retained earnings as a result of the stock dividend?
A) $ 270,000 decrease 
B) $ 450,000 decrease 
C) $ 540,000 decrease 
D) $ 750,000 decrease

On January 1, 2020, When the Market Value of Their