Reverse Stock Split According to a news story, "The shareholders of QED approved a 1-for-10 reverse split of QED's common stock." Accounting for a reverse stock split applies the same principles as accounting for a regular stock split. QED Exploration, Incorporated was an oil development company oper- ating in Texas and Louisiana. QED's stockholders' equity section before the reverse split included: Common stock, authorized 30,000,000 shares, issued 23,530,000 shares Additional paid-in capital Retained income Less treasury stock, at cost, 1,017,550 shares Total stockholders' equity $ 287,637 3,437,547 2,220,895 (305,250) $5,640,829 1. Prepare QED's stockholders' equity section after the reverse stock split. 2. Comment on possible reasons for a reverse split.