Lucid Company declared a property dividend of 37,000 shares of $1 par Polk Compa
ID: 2646058 • Letter: L
Question
Lucid Company declared a property dividend of 37,000 shares of $1 par Polk Company common stock. The Polk stock was purchased for $2 per share. Market value was $9 per share on the declaration date and $10 per share on the distribution date. What is the amount of the dividend?
Lucid Company declared a property dividend of 37,000 shares of $1 par Polk Company common stock. The Polk stock was purchased for $2 per share. Market value was $9 per share on the declaration date and $10 per share on the distribution date. What is the amount of the dividend?
Explanation / Answer
Property Dividend is recorded on the market value of the asset it contains at the date of declaration. So, the market price of the Polk Company Stock is $9 per Share on the date of declaration. So, total Dividend: 37,000 x 9 = $333,000
So, the Correct Option is a) $333,000
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