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Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 325,000 shares of $12 par value common stock. As of December 30, Year 1, Gilligan's stockholders' equity

Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 325,000 shares of $12 par value common stock. As of December 30, Year 1, Gilligan's stockholders' equity accounts report the following balances:

             
Common stock, $12 par, 325,000 shares authorized 32,500 shares issued and outstanding $ 390,000        
Paid-in capital in excess of par - Common   65,000        
        $ 455,000  
Retained earnings         440,000  
Total Stockholders' Equity       $ 895,000  
 

On December 31, Year 1, Gilligan decides to issue a 8% stock dividend. At the time of issue, the market price of the stock was $36 per share.

What is the number of shares outstanding after the stock dividend is issued?

Multiple Choice

327,600 shares

35,100 shares

29,900 shares

32,500 shares

Jun 17 2021 View more View Less

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