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Bramble Company has had 4 years of net income. Due to this success, the market price of its 370,000 shares of $6 par value common stock has increased from $14 per share to $54. During this period, paid-in capital remained the same at $2,220,000. Retained earnings increased from $1,750,000 to $12,100,000. President E. Rife is considering either a 16% stock dividend or a 2-for-1 stock split.

Bramble Company has had 4 years of net income. Due to this success, the market price of its 370,000 shares of $6 par value common stock has increased from $14 per share to $54. During this period, paid-in capital remained the same at $2,220,000. Retained earnings increased from $1,750,000 to $12,100,000. President E. Rife is considering either a 16% stock dividend or a 2-for-1 stock split.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Solve this problem it’s only one problem but it has two parts complete fully please
Bramble Company has had 4 years of net income. Due to this success, the market price of its 370,000 shares of $6 par value common stock has increased from $14 per share to $54. During this period, paid-in capital remained the same at $2,220,000. Retained earnings increased from $1,750,000 to $12,100,000. President E. Rife is considering either a 16% stock dividend or a 2-for-1 stock split. (a) He asks you to show the before-and-after effects of each option on retained earnings. Retained earnings after stock dividend %24 Retained earnings after stock split 24
Transcribed Image Text:Bramble Company has had 4 years of net income. Due to this success, the market price of its 370,000 shares of $6 par value common stock has increased from $14 per share to $54. During this period, paid-in capital remained the same at $2,220,000. Retained earnings increased from $1,750,000 to $12,100,000. President E. Rife is considering either a 16% stock dividend or a 2-for-1 stock split. (a) He asks you to show the before-and-after effects of each option on retained earnings. Retained earnings after stock dividend %24 Retained earnings after stock split 24
(b). He asks you to show the before-and-after effects of each option on total stockholders' equity. Total stockholders' equity after stock dividend 24 Total stockholders' equity after stock split 2$
Transcribed Image Text:(b). He asks you to show the before-and-after effects of each option on total stockholders' equity. Total stockholders' equity after stock dividend 24 Total stockholders' equity after stock split 2$
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