CHAPTER 12 Equity

Question 1

What happens to APIC and RE when liquidating dividends are paid and declared?

Answer 1

Decrease to APIC
Nothing to RE

Question 2

When there is a portion of declared dividends what happens to APIC and RE?

Answer 2

Decrease to both APIC and RE

Question 3

Are property dividends remeasured?

Answer 3

Yes at FV as of the date of declaration

Question 4

When we need to retire a stock how is Retained Earnings & Additional Paid in Capital affect?

Answer 4

Retained earnings is only affect when the stock price retires at a higher price than the original

APIC is decrease

Question 5

Are APIC and RE affected when corportion declared dividends?

Answer 5

They are decreased