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Question
On August 31, 2013, Victory Corporation's common stock is priced at $30 per share before any stock dividend or split, and the stockholders' equity section of its balance sheet appears as follows. Assume that the company declares and immediately distributes a 35% stock dividend.
| Common stock$7 par value, 95,000 shares authorized, 38,000 shares issued and outstanding | $ 266,000 | |||
| Paid-in capital in excess of par value, common stock | 100,000 | |||
| Retained earnings | 366,000 | |||
| Total stockholders' equity | $732,000 | |||
What is the total amount in the Paid-In Capital account immediately after the stock dividend?
A. $193,100
B. $195,000
C. $366,000
D. $100,000
E. $231,000
Answer
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