Prepare a statement of changes in shareholders' equity.

P$14\mathrm{.}9$A $($LO $5)$ AP The shareholders' equity accounts of Tmao Inc. at December $31,2023,$ are as follows:

Tmao has a $35\%$ income tax rate. During the following fiscal year ended December $31,2024,$ the company had the following transactions and events:

Feb. $1$ Repurchased $10,000$ common shares for $$40,000.$

July $12$ Announced a $2-$for$-1$ preferred stock split. The market price of the preferred shares at the date of announcement was $$150.$

Dec. $1$ Declared the annual cash dividend $($ $$1\mathrm{.}50$ post$-$split$)$ to the preferred shareholders of record on January $10,2025,$ payable on January $31,$

$18$ Declared a $10\%$ stock dividend to common shareholders of record at December $20,$ distributable on January $12,2025.$ The fair value of the

common shares was $$12$ per share.

$31$ Determined that for $2024,$ profit before income tax was $$350,000$ and other comprehensive income, net of income tax expense of $$35,$

was $$65,000.$

Instructions

Prepare a statement of changes in shareholders' equity for the year ended December $31,2024.$