What is the gain and net reduction in retained earnings


Stinson Corporation owned 30,000 shares of Matile Corporation. These shares were purchased in 2007 for $270,000. On November 15, 2011, Stinson declared a property dividend of one share of Matile for every ten shares of Stinson held by a stockholder. On that date, when the market price of Matile was $14 per share, there were 270,000 shares of Stinson outstanding. What gain and net reduction in retained earnings would result from this property dividend?

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Accounting Basics: What is the gain and net reduction in retained earnings
Reference No:- TGS084437

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