On November 1, 2014, the Cranberry Construction Company Declared a Property

On November 1, 2014, the Cranberry Construction Company declared a property dividend payable in the form of bonds held for long-term investment purposes. The bonds will be distributed to the common stockholders on December 15, 2014. The bonds to be distributed to the common stockholders originally cost Cranberry $210,000. Fair value of the bonds on various dates is as follows:
Which one of the following amounts should be used to record the appropriate credit to Property Dividends Payable?

A) $210,000
B) $220,000
C) $235,000
D) $230,000

Correct Answer:

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