E11-23 (Algo) Comparing Stock Dividends and Stock Splits LO11-6 On July 1, Davidson Corporation had the following capital structure: Common stock ( $2 par value) Additional paid-in capital Retained earnings Treasury stock $ 726,000 1,070,000 760,000 0 Required: Complete the table below for each of the two following independent cases: ((Round "Par value per share" amounts to 2 decimal places.) Case 1: The board of directors declared and issued a 40 percent stock dividend when the stock was selling at $4 per share. Case 2: The board of directors announced a 6-for-5 stock split (i.e., a 20 percent increase in the number of shares). The market price prior to the split was $4 per share. Items Before Dividend After Stock After Stock and Split Dividend Split 726,000 $ 726,000 2.00 $ 2.00 $ 1.67 Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity 1,070,000 $ 1,070,000 $ 1,070,000 760,000