Conflict over the distribution of earnings is the primary cause for failures among strategic alliances

Nice International originally issued 105,000 shares of common stock at a price of $22 per share

A year later, it distributed a 12% stock dividend to shareholders. At the time of the stock dividend, the share price had increased to $27 per share. Which of the following statements is true? A) Nice will record sales revenues of $277,200. B) Nice will record a loss of $63,000. C) Nice will record a gain of $63,000. D) Nice will record neither a gain nor a loss.

If the adjusting entry to transfer Net Income and Retained Earnings into the owner’s capital account is made prior to the end of the year, the Balance Sheet shows

A. Retained Earnings B. Net Income C. Both Net Income and Retained Earnings D. None of the above because the Net Income and Retained Earnings have been transferred into capital