Determining the Stockholder Equity Section
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The stockholders' equity section of the balance sheet of the XYZ Corp. is as follows:
Common Stock ($5 par) $ 20,000,000
Retained Earnings $176,000,000
Total $196,000,000
Assume that the company now splits its stock 5-for-1, show the resulting stockholder's equity section.
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Solution Summary
Provides steps necessary to determine the stockholder equity section.
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In a stock split, the par value reduces and the number of shares increases, but there is no change in the values of the equity ...
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