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Sagot :
The issuer of a 5% common stock dividend (small stock dividend) to common stockholders should debit stock dividends for an amount equal to the Market value of the shares issued.
A company is said to have issued a small stock dividend when the number of shares is less than 25% of the outstanding common stock.
The amount for recording a small stock dividend is determined by multiplying the market price on the date of declaration with the number of shares being issued as stock dividend.
If the company issues a large stock dividend, then the par value of the shares being issued is used to calculate the amount.
Thus, a small stock dividend is treated differently than a large stock dividend with respect to the price at which it is recorded.
Learn more about stock dividend here: https://brainly.com/question/13229924
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