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Question - Given the following information about a corporation's current year activities, answer the question below:
Retained Earnings, December 31 (Prior Year............ $250,000
Cost of Goods Sold............................................. $90,000
Other Operating Expenses..................................... $54,000
Cash Dividends $30,000
Period (Inventory error)....................................... $23,000
Stock dividends $20,000
Net Income $36,000
Retained Earnings, December 31 (prior Year)............ $250,000
Compute the retained earnings for the current year?
SpaceCo declared and distributed a 20% stock dividend on 5 million, $1 par value, common shares. Why is this called "capitalizing" retained earnings
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