Alcoa Announces 33% Increase in Base Dividend, 2-For-1 Stock Split. Pittsburgh--Alcoa today announced that its Board of Directors approved a base quarterly dividend increase of 33%. Alcoa's announcement indicated that the new quarterly dividend would be 25 cents per share. It also stated that the Board of Directors declared a two-for-one stock split and reaffirmed its commitment to a share repurchase program. Required: 1. What are the two primary reporting alternatives Alcoa has in accounting for the repurchase of its shares? What would the effect of the optional courses of action on total shareholders' equity? Explain. What would be the effect of the optional courses of action on how stock would be presented in Alcoa's balance sheet? If the shares are later resold for an amount greater than cost, how should Alcoa account for the sale? 2. What are the two primary courses of action Alcoa has in accounting for the stock split, and how would the choice affect Alcoa's shareholders' equity? Why? 3. How should Alcoa account for the cash dividend, and how would it affect Alcoa's balance sheet? Why