Question

On July 1, Davidson Corporation had the following capital structure:      Common stock ( $4 par...

On July 1, Davidson Corporation had the following capital structure:

  

  Common stock ( $4 par value) $ 696,000
  Additional paid-in capital 1,060,000
  Retained earnings 890,000
  Treasury stock   0

Required:

Complete the table below for each of the two following independent cases: (Round "Par value per share" answers to 2 decimal places.)


Case 1: The board of directors declared and issued a 50 percent stock dividend when the stock was selling at $6 per share.

Case 2: The board of directors announced a 6-for-5 stock split (i.e., a 20 percent increase in the number of shares). The market price prior to the split was $6 per share.

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