The issuer of an ordinary share dividend to ordinary shareholders should transfer from retained earnings to contributed capital an amount equal to the
A)fair value of the shares issued.
B)book value of the shares issued.
C)minimum legal requirements.
D)par or stated value of the shares issued.

Question

Quizplus · Accepted Answer

When a company issues a stock dividend, it transfers the par or stated value of the shares from retained earnings to contributed capital.

The Issuer of an Ordinary Share Dividend to Ordinary Shareholders