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.
$$\begin{array} { | c | c | c | c | c | c | c | } \hline \text { Item } & \begin{array} { c } \text { Common } \\\text { Stock }\end{array} & \begin{array} { c } \text { Additional } \\\text { Paid-In } \\\text { Capital }\end{array} & \begin{array} { c } \text { Deferred } \\\text { Compensation }\end{array} & \begin{array} { c } \text { Retained } \\\text { Earnings }\end{array} & \begin{array} { c } \text { Treasury } \\\text { Stock at } \\\text { Cost }\end{array} & \begin{array} { c } \text { Total Common } \\\text { Shareholders' } \\\text { Equity }\end{array} \\\hline \text { a. } & & & & & & \\\hline \text { b. } & & & & & & \\\hline \text { c. } & & & & & & \\\hline \text { d. } & & & & & & \\\hline \text { e. } & & & & & & \\\hline \text { f. } & & & & & & \\\hline\end{array}$$

---

Definitions:

Drive Reduction

A theory in psychology suggesting that motivation arises from the desire to reduce internal tension caused by unmet biological needs, such as hunger or thirst.

Social Motive

Refers to the underlying reasons that drive individuals to engage in various social behaviors.

Hunger

A physical sensation caused by the body's need for nutrients, leading to the desire to eat.

Drive Reduction

A theory in psychology suggesting that behavior is motivated by the desire to reduce internal drives, such as hunger or thirst, to return to a state of homeostasis.