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Show the before-and-after effects of the dividend

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Question - The shareholders' equity section of Sheridan Corporation's balance sheet consists of 312,000 common shares for $2.06 million, and retained earnings of $730,000. A 10% stock dividend is declared when the fair value per share is $12. Show the before-and-after effects of the dividend on (a) share capital, (b) retained earnings, (c) total shareholders' equity, and (d) the number of shares.

Reference no: EM132860274

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