On December 31, 20X0, a company declared and distributed a property dividend at a time...
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Accounting
On December 31, 20X0, a company declared and distributed a property dividend at a time when the fair market value of the property was greater than the net book value of the property. As a result of the declaration and distribution of the dividend, what are the accounting effects of this transaction? (a) The property dividends are recorded at net book value and retained 1. (b) The property dividends are recorded at fair market value and retained (c) The property dividends are recorded at net book value and retained (d) The property dividends are recorded at fair market value and retained earnings will decrease. earnings will increase. earnings will increase. earnings will decrease. 2. A corporation declared a dividend, part of which was considered a liquidating dividend. How does the declaration of such a dividend affect each of the following general ledger accounts? Additional Retained Paid In Capital Earnings (a) No effect (b) Decrease (c) Decrease No effect Decrease Decrease No effect No effect
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