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a. Key‘s Paid-in Capital in Excess of Par account increased $2,000,000
b. Key’s total stockholders‘ equity was unaffected.
c. Key‘s Stock Dividends account increased $6,000,000.
d. All of these answer choices are correct.

1 Answer

2

Answer:

d. All of these answer choices are correct.

Explanation:

Based on the information given as a result of this event their Paid-in Capital in Excess of Par account will increased with amount of $2,000,000 while their total stockholders‘ equity will be unaffected and lastly the Stock Dividends account will increased

by the amount of $6,000,000 which is calculated as :

Stock Dividends account=2,000,000 *.20*(25%*20+$10)

Stock Dividends account=2,000,000 *.20*$15

Stock Dividends account=$6,000,000

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Leilani Hodkiewicz
15.5k 3 10 26
answered 10 months ago