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On October 1,2016,Chief Corporation Declared and Issued a 10% Stock

Question 34

Multiple Choice

On October 1,2016,Chief Corporation declared and issued a 10% stock dividend.Before this date,Chief had 80,000 shares of $5 par common stock outstanding.The market value of Chief Corporation on the date of declaration was $10 per share.As a result of this dividend,Chief's retained earnings will:


A) Decrease by $80,000.
B) Not change.
C) Decrease by $40,000.
D) Increase by $80,000.

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