Question

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on june 30, sharper corporations stockholders equity section of its balance sheet appears as follows before any stock
dividend or split. sharper declares and immediately distributes a 50% stock dividend.
common stock-$10 par value, 66,000 shares issued and
outstanding $ 660,000
paid-in capital in excess of par value, common stock 200,000
retained earnings 700,000
total stockholders equity $ 1,640,000
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required 1 required 2
compute the number of shares outstanding after the distribution is made.
number of common shares outstanding

Explanation:

Step1: Calculate the number of new shares

The number of new shares = Number of existing shares × Stock dividend percentage.
The number of existing shares is 66,000 and the stock dividend percentage is 50% (or 0.5).
So, the number of new shares = \(66000\times0.5 = 33000\)

Step2: Calculate the number of shares outstanding after the distribution

The number of shares outstanding after the distribution = Number of existing shares+ Number of new shares.
Number of existing shares = 66,000 and number of new shares = 33,000.
So, the number of shares outstanding after the distribution=\(66000 + 33000=99000\)

Answer:

99000