(Learning Objectives 2, 3, 4: Measuring the effects of share issuance, dividends, and treasury shares transactions) Identify the effects—both the direction and the dollar amount—of these assumed transactions on the total shareholders’ equity of Athol Corporation.

Each transaction is independent.

a. Declaration of cash dividends of $78 million.

b. Payment of the cash dividend in a.

c. A 25% shares dividend. Before the dividend, 70 million shares of $2.00 par ordinary share were outstanding; the market value was $8.250 at the time of the dividend.

d. Purchase of 1,900 shares of treasury shares (par value $2.00) at $5.25 per share.

e. Sale of 900 shares of the treasury shares for $7.00 per share. Cost of the treasury share was $5.25 per share.

f. A 2-for-1 stock split. Prior to the split, 70 million shares of $2.00 par ordinary shares were outstanding.