The shareholders’ equity section of the statement of financial position of Del Rosso Winery Inc. at December 31, 2024, is given below:On December 31, 2024, the board of directors proposed a five-for-four common stock split. The proposal was approved and new shares were distributed among shareholders. The market price of the shares on December 31, 2024, was $24 per share.

Required 

a. Determine the number of shares that were distributed among the shareholders as a result of the five-for-four stock split. 

b. What accounting entry will be made for this split?
c. What would be the expected market price for the shares after giving rise to the five-for-four stock split?
d. Show the shareholders’ equity section of the statement of financial position of the company immediately after the five-for four stock split.

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Shareholders' equity: Preferred shares, $7 cumulative, unlimited authorized, 200,000 shares issued and outstanding Common shares, 200,000 authorized, 80,000 shares issued and outstanding Retained earnings Total shareholders' equity $2,000,000 1,600,000 2,500,000 $6,100,000