Gilligan Corporation was established on February 15, Year 1. Gilligan is authori

Question

Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 775,000 shares of $15 par value common stock. As of December 30, Year 1, Gilligan's stockholders' equity accounts report the following balances:

Common Stock, $15 par, 775,000 shares authorized 77,500 shares issued and outstanding: $1,162,500

Paid-in capital in excess of par - Common: $155,000

Retained Earnings: 710,000

Total Stockholder's Equity: $2,027,500

What is the dollar value of the stock dividend issued by Gilligan Corporation?

a. 223,200

b. 13,950,000

c. 69,750

d. 46,500

On December 31, Year 1, Gilligan decides to issue a 6% stock dividend. At the time of issue, the market price of the stock was $48 per share

Explanation / Answer

Stock dividend amount = Stock dividend * par value capital

= 6% * 1162500

= 69750

Correct choice: C

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