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On July 1 Davidson Corporation had the following capital structure: Common stock ( $4 par value) Additional paid-in capital Retained earnings Treasury atook $636,000 1.070,000

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On July 1 Davidson Corporation had the following capital structure: Common stock ( $4 par value) Additional paid-in capital Retained earnings Treasury atook $636,000 1.070,000 800,000 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 : The board of directors declared and issued a 40 percent stock dividend when the stock was selling at $6 per share. Case 2: The board of directors announced a 6-for-5 stock split (.e., a 20 percent increase in the number of shares). The market price prior to the spilt was $6 per share. Items After Stock Dividend After Stock Split Common stock account Par value per share Shares outstanding Additional paid in capital Retained earnings Total stockholders' equity Before Dividend and Split $ 636,000 $ 4.00 159,000 $ 1,070,000 $ 800,000 $ 2,506,000

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