On january 1, mccarver corporation had 600,000 shares of $10 par value common stock outstanding. on march 31 the company declared a 10% stock dividend. market value of the stock was $15/share. as a result of this event, a. mccarver's paid-in capital in excess of par value account increased $300,000.b. mccarver's total stockholders' equity was unaffected. c. mccarver's stock dividends account increased $900,000.d. all of these answer choices are correct.

.d. All of these answer choices are correct.

Explanation:

600,000 x 10% = 60,000 shares x 15 market price = 900,000 stock dividends

60,000 x 10 face value = 600,000 common stock

60,000 x 5 = 300,000 additional paid-in (a)

retained earnings               900,000

  stock dividends                                 900,000 (c)

-- when declaring the dividends---

stock dividneds 900,000

   common stock                 600,000

   additional paid in capital 300,000

-- to record payment

When delcaring we decrease RE which is equity by 900,00

then when performing the payment we increase common stock and additional paid-in captal by a totla of 900,000

so the equity remains unchanged. (b)

Thus, all answer choices are correct

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