Par value is use to record ________ and market value is used to record ________.
A)small stock dividends;stock splits
B)large stock dividends;small stock dividends
C)stock splits;small stock dividends
D)large stock dividends;stock splits

Question

Quizplus · Accepted Answer

A large stock dividend (more than 25 percent of the company's outstanding stock)is recorded at par value;thus,the decrease in Retained Earnings equals the increase in the Common Stock account.A small stock dividend (less than 25 percent of the company's outstanding stock)is recorded at market value.

Par Value Is Use to Record ________ and Market Value