The shareholders’ equity section of the statement of financial position of Del Rosso Winery Inc. at December 31, 2020, is given below:
Shareholders’ equity:
Preferred shares, $7 cumulative, unlimited authorized,
200,000 shares issued and outstanding   ....................................    $2,000,000
Common shares, 200,000 authorized, 80,000 shares
issued and outstanding .................................................................       1,600,000
Retained earnings ..........................................................................       2,500,000
Total shareholders’ equity ............................................................     $6,100,000

On December 31, 2020, the board of directors proposed a five-for-four common stock split. The proposal was approved and new shares were distributed among shareholders. The market price of the shares on December 31, 2020, was $24 per share.

Required

a. Determine the number of shares that were distributed among the shareholders as a result of the five-for-four stock split.

b. What accounting entry will be made for this split?

c. What would be the expected market price for the shares after giving rise to the five-for-four stock split?

d. Show the shareholders’ equity section of the company immediately after the five-for-four stock split.