Centurion Alarms recently declared a 10 percent stock dividend. Prior to the stock dividend, the equity section on Centurion's balance sheet was: ? Common stock (100,000 shares outstanding, $1 par value) $100,000 Additional paid-in capital 60,000 Retained earnings 90,000
Total common shareholders' equity $250,000 ? Centurion's stock currently sells for $4 per share. After the stock dividend is paid, the amount in the Common stock account should be _______ and the amount in the Retained earnings account should be ______.
A. $110,000; $50,000
B. $100,000; $90,000
C. $140,000; $50,000
D. $100,000; $50,000
E. $90,000; $110,000
Answer: A
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