Despot declared a property dividend to give marketable securities to its common stockholders. The securities had cost Despot $7 million and currently have a fair value of $16 million. Which of the following would be included in recording the property dividend declaration?
A. Increase in a liability for $16 million.
B. Decrease in retained earnings for $7 million.
C. Decrease in marketable securities by $16 million.
D. All of the above are correct.
Answer: A
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.