On January 1, 2014, Culver Corporation had 110,000 shares of its $5 par value common stock outstanding. On June 1, the corporation acquired 10,000 shares of stock to be held in the treasury. On December 1, when the market price of the stock was $10, the corporation declared a 15% stock dividend to be issued to stockholders of record on December 16, 2014. What was the impact of the 15% stock dividend on the balance of the retained earnings account?
A. $150,000 decrease
B. $165,000 decrease
C. No effect
D. $937,500 decrease
Answers: 1
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