Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 550,000...
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Accounting
Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 550,000 shares of $10 par value common stock. As of December 30, Year 1, Gilligan's stockholders' equity accounts report the following balances:
Common stock, $10 par, 550,000 shares authorized 55,000 shares issued and outstanding
$ 550,000
Paid-in capital in excess of par - Common
110,000
$ 660,000
Retained earnings
575,000
Total Stockholders' Equity
$ 1,235,000
On December 31, Year 1, Gilligan decides to issue a 10% stock dividend. At the time of issue, the market price of the stock was $42 per share.
What is the number of shares outstanding after the stock dividend is issued?
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