Problemcba inc has 400000 shares os with a 5 par value the, Ask an Expert

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Problem:

CBA Inc has 400,000 shares o/s with a $5 par value. The shares were issued for $12/share. The stock is currently selling for $34/share. CBA has $5,000,000 in Ret. Earnings and has declared a stock dividend that will increase the number of o/s shares by 6%.

Requirement:

Question: What will be the capital in excess of par account after the stock dividend?

$7,685,000
$2,685,000
$3,496,000
$2,385,000

Note: Explain all steps comprehensively.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172208

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