The common shares of Hoover Inc. are currently selling at $143 per share. The directors want to reduce the share price and increase the share volume before making a new issue. The per share carrying value is $34. There are currently 1 million shares issued and outstanding. 

Instructions 

a. Prepare the necessary journal entries assuming that: 

1. The board votes a 2-for-1 stock split. 

2. The board votes a 100% stock dividend at the fair value of the shares. 

b. Briefly discuss the accounting and securities market differences between these two methods of increasing the number of shares outstanding.