Equity

Question 1

Property Dividend

Answer 1

recorded at Fair Market Value as on the declaration date and any difference between the fair value and book value is recognized as gain or loss as if the asset is sold at the fair value.

Question 2

Stock Split

Answer 2

reduction in the par value per share, together with a proportional increase in the number of shares outstanding. For instance, in a 2-for-1 split, the par value per share is halved, while the number of shares outstanding is doubled. Total par value, additional paid-in capital, stockholders’ equity, and total assets remain unchanged.