Mathematics, 27.07.2021 15:40 reecedstceklein
On January 31, 2009, Village Bank had 500,000 shares of $2 par value common stock outstanding. On that date, the company declared a 14% stock dividend when the market price of the stock was $37 per share. The immediate effect of this dividend upon Village Bank was:.
a. A liability to the stockholders of $140,000.
b. A reduction in retained earnings of $140,000.
c. A reduction in cash of $2,590,000.
d. A reduction in retained earnings of $2,590,000.
Answers: 3
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