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Posted: April 20th, 2022

On July 1, 20×5, Blaylock Corp

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On July 1, 20×5, Blaylock Corporation had 40,000 shares of its $100 par value common stock outstanding. On July 2, 20×5, Blaylock declared a 15 percent stock dividend to be distributed on August 6, 20×5, to shareholders of record on July 16, 20×5. What amount of retained earnings should be transferred to contributed capital because of this dividend?

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