The Following Is Information Taken from the Shareholders' Equity Section

question 12

Essay

The following is information taken from the shareholders' equity section of the projected summary financial statements of Deer Fly Corp. to December 31, 2021, prior to the board of directors' meeting to decide on dividends or other share transactions related to its 10,000 issued common shares for the year. Instructions
Prepare in three-column comparative format, the shareholders' equity section as it would appear under each of the following possible options that the board is considering. Only one of the options will be chosen, so assume they are mutually exclusive. Describe any additional disclosure that would be required.
a) The board declares a 20% stock dividend.
b) The board approves a 3-for-1 stock split.

Understand the significance and purposes of strategic alliances and partnerships in international business.

Grasp the concept and impact of absolute and comparative advantage in international trade.

Identify the key international organizations and agreements that facilitate global commerce.

Understand the role of political and sociocultural factors in shaping international business operations.

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Definitions:

Invested

Refers to the allocation of resources, usually money, into something expecting a return, such as stocks, bonds, or a business venture.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership stake in a company.

Paid-In Capital

The total amount of capital that shareholders have directly invested in a company through the purchase of its securities.

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its shareholders as dividends.