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c. The accounting for a property dividend should be based on the
carrying value (book value) of the nonmonetary assets transferred.
d. All of these statements are true.
51. Houser Corporation owns 4,000,000 shares of stock in Baha
Corporation. On December 31, 2012, Houser distributed these shares
of stock as a dividend to its stockholders. This is an example of a
a. property dividend.
b. stock dividend.
c. liquidating dividend.
d. cash dividend.
52. A dividend which is a return to stockholders of a portion of
their original investments is a
a. liquidating dividend.
b. property dividend.
c. liability dividend.
d. participating dividend.
53. A mining company declared a liquidating dividend. The
journal entry to record the declaration must include a debit to
a. Retained Earnings.
b. a paid-in capital account.