On january 1, lang, inc. has 100,000 shares of stock issued and outstanding. the board of directors of lang wants to authorize a large stock dividend. this means that they must authorize a stock dividend of at least shares of stock.

50% of stock

Explanation: Assuming a stock dividend of 50 percent and using the share values in the example above, on the declaration date the following entry is made: debit retained earnings $100 (500 shares x 20 cents) and credit common stock dividend distributable $100. When the stock is actually distributed, the following entry is made: debit common stock dividend distributable $100, credit common stock $100.

correct, but each time you dont pay the price of the penalty can increase.