Fox Inc. had 400,000 shares of $3 par common stock outstanding. The company decl

Question

Fox Inc. had 400,000 shares of $3 par common stock outstanding. The company declared a stock dividend of 50,000 shares when the market price was $30. By how much did additional paid-in capital increase when the dividend was distributed to the shareholders? $0 $1,350,000 $150,000 $1,500,000 Fox Inc. had 400,000 shares of $3 par common stock outstanding. The company declared a stock dividend of 50,000 shares when the market price was $30. By how much did additional paid-in capital increase when the dividend was distributed to the shareholders? $0 $1,350,000 $150,000 $1,500,000 Fox Inc. had 400,000 shares of $3 par common stock outstanding. The company declared a stock dividend of 50,000 shares when the market price was $30. By how much did additional paid-in capital increase when the dividend was distributed to the shareholders? $0 $1,350,000 $150,000 $1,500,000

Explanation / Answer

Answer is $1350,000

Explanation:

Par value per share: $ 3 per share

Market price per share: $ 30 per share

Additional paid in capital per share (30-3): $27 per share

Number of stock dividend shares: 50,000 shares

Total Additional Paid-in capital (50,000 shares @27 per share): $ 1350,000

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