Question 5. On November 30, 2020 Tuchel Corp. declared a 17% common stock dividend, to...
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Question 5. On November 30, 2020 Tuchel Corp. declared a 17% common stock dividend, to be distributed on December 20, 2020. Prior to this dividend, Tuchel Corp. had 500,000 shares of $1 par value common stock issued and outstanding. The market price (i.e., fair value) of Tuchels common stock was $88 per share on November 30, 2020, and $85 per share on December 20, 2020. a. Is this a large or small stock dividend? b. Provide the journal entries necessary (if any) on the November 30, 2020: c. As a result of this stock dividend, what is the impact on total stockholders equity? (i.e., does it increase/decrease/no change)
Question 6. Please take the same information provided in Question 5 above, except now assume that Tuchel Corp. declared a 30% common stock dividend. a. Is this a large or small stock dividend b. Provide the journal entries necessary (if any) on the November 30, 2020: c. As a result of this stock dividend, what is the impact on total stockholders equity? (i.e., does it increase/decrease/no change)
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