Mildred corporation owned 2000 shares of lester corporation


Mildred Corporation owned 2,000 shares of Lester Corporation. These shares were purchased in 2010 for $18,000. On October 15, 2014, Mildred declared a property dividend of one share of Lester for every ten shares of Mildred held by a stockholder. On that date, when the market price of Lester was $14 per share, there were 18,000 shares of Mildred outstanding. What gain and net reduction in retained earnings would result from this property dividend?

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Financial Accounting: Mildred corporation owned 2000 shares of lester corporation
Reference No:- TGS01671059

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