X v fxF19AВCDEFG|12At December 31, Artists Unlimited Company had the following stockholders' equity components that would be part of the balance sheet:34Required:Thecompany is considering three alternative distributions to stockholders. Consider each alternative independently of the others.6.Complete the table above and show the effect on stockholders' equity as a result of each of these distributions.7Use information in column B to complete columns C, D, and E.8.9.1) Issue a 100% stock dividend.100%10OR112) Execute a 2-for-1 stock split.12OR133) Distribute a $5,000 cash dividend.$5,0001415Stock2 for 1 StockCash16 Stockholders' Equity17 Contributed Capital:At Dec 31DividendSplitDividend18Number of common shares outstanding5,00019$1.00Par value per common shareCommon Stock, at par20$5,00021Additional Paid-in Capital745,00022Total Contributed Capital750,00023Retained Earnings980,000$1,730,00024Total Stockholders' Equity2526

The shareholders' equity section includes the changes to share capital and retained earnings of the…

Answered: At December 31, Artists Unlimited…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter7: Stocks (equity) - Characterstics And Valuation

Section: Chapter Questions

Problem 17PROB

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