a)
To determine: The number of shares after the stock split.
Introduction:
A company divides its share into multiple shares and issues to the shareholders as an additional share as per the decisions by the management is termed as stock split.
b)
To determine: The value of GM Company after the stock split.
c)
To determine: The comparison of the total value of Person N’s stock holding before and after the stock split.
d)
To discuss: Whether the Person N attains a profit or loss on the stock due to 2 for 1 split.
e)
To discuss: The tax liability of Person N.
Introduction:
Tax refers to the charge that the governments levy on the income of the individual or corporations.
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