On March 1, 2017, VisionTech Inc.’s board of directors declared a 5% share dividend when the market price per share was $10.00. On November 15, 2017, the board of directors declared a 4:1 share split. The equity section of the company’s December 31, 2016, balance sheet showed:

Required1. Prepare a statement of changes in equity for the year ended December 31, 2017, assuming profit earned during the year was $4,784,000.2. Prepare the equity section of the December 31, 2017, balance sheet.

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Common shares; 20,000,000 shares authorized; 2,500,000 shares issued and outstanding Retained earnings. $15,600,000 5,142,400