contestada

Bryn Mar Company is authorized to issue 1,000,000 shares of $10 par value common stock. By March 15, 2019, the company had issued 200,000 shares at $34 per share. On March 15, 2019, the company declared a 10% stock dividend when the market price was $40 per share. What amount is transferred from retained earnings to paid-in capital as a result of the stock dividend

Respuesta :

Zviko

Answer:

$680,000

Explanation:

Dividends are paid from Profits Attributable to Shareholders.

Only issued share common stock at par value is used in the calculation of  common stock dividend.

Dividend Calculation =  200,000 × $34 × 10% = $680,000