Question: Albright Inc. has recently issued a 10% stock dividend to its existing stockholders. As a result of the issuance of the stock dividend the market price of the stock declined 25%. Albright has requested your assistance as to treating this stock dividend as a stock split. Would this be acceptable under GAAP?
Do NOT prepare an accounting research memo. Locate the authoritative GAAP that provides a tenable conclusion for the case. Show the complete citation(s) and discuss the application of the citation(s) to the relevant facts. Use complete sentences, correct spelling, and proper grammar.
The example on page 89 of Collins is an excellent one to follow.
In addition, provide a discussion of how you located the answer in the ASC - the steps you used to locate the support for your tenable conclusion