Pierson corporation owned 10,000 shares of hunter corporation. these shares were purchased in 2011 for $90,000. on november 15, 2015, pierson declared a property dividend of one share of hunter for every ten shares of pierson held by a stockholder on that date, when the market price of hunter was $28 per share, there were 90,000 shares of pierson outstanding what gain and net reduction in retained earnings would result from this property dividend?

Gain in retained earnings = $171,000

Net reduction = $81,000

Explanation:

Data provided;

Number of shares owned = 10,000

Purchasing cost of the shares = $90,000

Declared property dividend for every 10 share = 1 share

thus,

for 90,000 Outstanding shares Declared property dividend

= = 9,000

Market price per share = $28

Outstanding shares = 90,000

Now,

Gain in retained earnings

= ( Market price per share - Purchasing price per share ) × Declared property dividend

= ( $28 - ) × 9,000

= 171,000

and,

Net reduction = Market price - Gain

= $28 × 9,000 - $171,000

= $81,000

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hope this

the answer choices are:

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provides automatic payment services

provides home loans by using saving accounts

accept tax return refunds

hopefully someone can answer the question now lol