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Question: Albright Inc. has recently issued a 10%


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?

The issue for this case is whether a 10% stock dividend that reduces the market price of the stock can be accounted for as a stock split.



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