I’m working on a accounting writing question and need guidance to help me understand better.
DePaul Inc. has 1,500,000 shares of $1 par value common stock outstanding. The stock was originally issued for $5 per share in March, 2017.On April 1, 2021, Smith declared a 10% stock dividend for shareholders of record when the fair value of the companys common stock was $30 per share. The stock dividend was distributed on April 30, 2021.The staff accountant is unsure of how much to reduce Retained Earnings for the impact of the stock dividend.
Accounting Issue: How much should DePaul decrease Retained Earnings for the impact of the stock dividend?
GAAP Codification Reference:_______________________
Your interpretation of the guidance: What is the correct amount to decrease Retained Earnings for the stock dividend?(when entering do not use $ signs, commas or decimals)
Use the Codification site with the link provided below for the codification reference that is needed to answer the question.