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1. ABC Company had the following accounts on the balance sheet: a. Cash $25 million b. Common Stock ( $10 par, 2 million shares outstanding)

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1. ABC Company had the following accounts on the balance sheet: a. Cash \$25 million b. Common Stock ( $10 par, 2 million shares outstanding) $20 Million c. Additional paid in capital $10 Million d. Retained Earnings $62 Million How would each of these accounts appear after: a. A cash dividend of $1 per share? b. A 5% stock dividend (fair market value is $40 per share)? c. A two-for-one stock split? 1a. Cash Common Stock: Additional Paid in Capital Retained Earnings 1b. Cash Common Stock: Additional Paid in Capital Retained Earnings 1c. Cash Common Stock: Additional Paid in Capital Retained Earnings

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