When a subsidiary issues a stock dividend, an amount equal to the fair value of the shares should be removed from retained earnings and transferred to paid-in-capital in excess of par, if the distribution:
A)is less than 20% of the previously outstanding shares.
B)exceeds 20% of the previously outstanding shares.
C)is more than 50% of the previously outstanding shares.
D)does not exceed 20% to 25% of the previously outstanding shares.

Question

When a subsidiary issues a stock dividend, an amount equal to the fair value of the shares should be removed from retained earnings and transferred to paid-in-capital in excess of par, if the distribution:
A)​is less than 20% of the previously outstanding shares.
B)​exceeds 20% of the previously outstanding shares.
C)​is more than 50% of the previously outstanding shares.
D)​does not exceed 20% to 25% of the previously outstanding shares.

Quizplus · Accepted Answer

The Answer of When a subsidiary issues a stock dividend, an amount equal to the fair value of the shares should be removed from retained earnings and transferred to paid-in-capital in excess of par, if the distribution:
A)​is less than 20% of the previously outstanding shares.
B)​exceeds 20% of the previously outstanding shares.
C)​is more than 50% of the previously outstanding shares.
D)​does not exceed 20% to 25% of the previously outstanding shares.

When a Subsidiary Issues a Stock Dividend, an Amount Equal