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On June 30, 2010, when Ermler Co.'s stock was selling at $65 per share, its capital...

On June 30, 2010, when Ermler Co.'s stock was selling at $65 per share, its capital accounts were as follows: Capital stock (par value $50; 60,000 shares issued) $3,000,000 Premium on capital stock 600,000 Retained earnings 4,200,000 If a 100% stock dividend were declared and distributed, capital stock would be?

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Answer #1

Solution:

Stock dividend = $3,000,000*100% = $3,000,000

capital stock would be = existing + stock dividend

= 3000000+ 3000000

= $6,000,000


answered by: ANURANJAN SARSAM
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