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had 4 years of record earnings. Due to this success, the market price of its 405,000 shares of $4 par value common stock has increased

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had 4 years of record earnings. Due to this success, the market price of its 405,000 shares of $4 par value common stock has increased from $14 per this period, paid-in capital remained the same at $4,860,000. Retalned earnings increased from $3,645,000 to $24,300,000 Blossom Company has share considering either (1) a 15% stock dividend or 2) a 2-for-1 stock split stockholders' equity, and (c) par value per share . CEO Don Ames is He asks you to show the before-and-after effects of each option on (a) reta ned earnings, (b) total 1. Stock dividend - retained eamings 2. 2-for-1 stock split- retained earnings Blossom Company Original Balance After Dividend After Split Paid-in capital Retalned earnings Total stockholder's equity Shares outstanding ar value per share s 2. 2-for-1 stock split- par value per shares Stock

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