If management wishes to “capitalize” part of the earnings, it may issue aa.
Farmer Corporation owns 4,000,000 shares of stock in Baha Corporation.
On December 31, 2007, Farmer distributed these shares of stock as a dividend to its stockholders.
Pryor Corporation issued a 100% stock dividend of its common stock which had a par value of $10 before and after the dividend.
increases retained earnings and increases total stockholders’ equity.57.
both income retained by the corporation AND contributions by shareholders. Shareholders' equity is generally classified into two major categories: d.