c. may increase or decrease paid-in capital in excess of par but does not change total stockholders ' equity.
d. increases retained earnings and increases total stockholders ' equity.
57. Quirk Corporation issued a 100 % stock dividend of its common stock which had a par value of $ 10 before and after the dividend. At what amount should retained earnings be capitalized for the additional shares issued?
a. There should be no capitalization of retained earnings. b. Par value c. Fair value on the declaration date d. Fair value on the payment date
58. The issuer of a 5 % common stock dividend to common stockholders preferably 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.
59. At the date of declaration of a small common stock dividend, the entry should not include