(1) (2) On October 31, the stockholders' equity section of Sunland Company's balance sheet consists of common stock $696,000 and retained earnings $397,000. Sunland is considering the following two courses of action: Declaring a 5% stock dividend on the 87,000 $8 par value shares outstanding Effecting a 2-for-1 stock split that will reduce par value to $4 per share. Stockholders' equity The current market price is $15 per share. Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares. Paid-in capital Retained earnings Total stockholders' equity Outstanding shares Before Action $ Sunland Company's Balance Sheet After Stock Dividend $ LA After Stock Split LA 5 $ !!! tA

On October 31, the stockholders' equity section of Sunland Company's balance sheet consists of common stock $696,000 and retained earnings $397,000. Sunland is considering the following two courses of action: (1) Declaring a 5% stock dividend on the 87,000$8 par value shares outstanding (2) Effecting a 2 -for-1 stock split that will reduce par value to $4 per share. The current market price is $15 per share. Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares