In the Chart Below,assign the Directional Effect (I = Increase,D

question 43

Essay

In the chart below,assign the directional effect (I = increase,D = decrease,or NE = no effect)of each of the following six transactions on the components of the book value of common shareholders' equity.
a.Small stock dividend declared and issued.
b.2-for-1 stock split announced and issued.
c.Stock options granted.
d.Recognition of compensation expense on stock options.
e.Stock options exercised.
f.Stock options expired.
$$\begin{array} { | c | c | c | c | c | c | c | } \hline \text { Item } & \begin{array} { c } \text { Common } \\\text { Stock }\end{array} & \begin{array} { c } \text { Additional } \\\text { Paid-In } \\\text { Capital }\end{array} & \begin{array} { c } \text { Deferred } \\\text { Compensation }\end{array} & \begin{array} { c } \text { Retained } \\\text { Earnings }\end{array} & \begin{array} { c } \text { Treasury } \\\text { Stock at } \\\text { Cost }\end{array} & \begin{array} { c } \text { Total Common } \\\text { Shareholders' } \\\text { Equity }\end{array} \\\hline \text { a. } & & & & & & \\\hline \text { b. } & & & & & & \\\hline \text { c. } & & & & & & \\\hline \text { d. } & & & & & & \\\hline \text { e. } & & & & & & \\\hline \text { f. } & & & & & & \\\hline\end{array}$$

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Definitions:

Positive Reappraisal Strategy

A cognitive coping mechanism involving reinterpretation of a situation in order to see it in a more positive light or to extract positive meaning from it.

Primary Appraisal

Describes the initial evaluation process where a person decides whether a stimulus is a threat, beneficial, or irrelevant to their well-being.

Distress

Extreme anxiety, sorrow, or pain, whether emotional or physical, that affects an individual's level of functioning or well-being.

Stressful Situation

Circumstances or events that induce a state of tension or stress, often requiring adaptation or coping mechanisms.