ABC declared a property dividend. The dividend consisted of 20,000 common shares of its investment...
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ABC declared a property dividend. The dividend consisted of 20,000 common shares of its investment in XYZ Company. The shares had originally been purchased at $1 per share. The value of the shares on the declaration date is $7 per share. What is the first entry that should be recorded related to this dividend? 120000 a) Retained earnings Property dividends payable 120000 140000 b) Retained earnings Property dividends payable Gain 20000 120000 120000 c) Investment in XYZ Retained earnings 120000 120000 d) Investment in XYZ Gain 120000 Manning Company issued 10,000 shares of its no-par common stock having a fair value of $20 per share and 15,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $500,000. How much of the proceeds would be allocated to the common stock? a) $250,000 b) $283,636 c) $200,000 d) $236,364
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