III$-$PROBLEM

On June $30,2023,$ Sharper Corporation's common stock is priced at $$30\mathrm{.}50$ per share before any stock dividend or split, and the stockholder' equity section of its balance sheet appears as follows.

Common stock$-$ $$8$ par value, $80,000$ shares

authorized, $32,000$ shares issued and outstanding $.......$ $$256,000$

Paid$-$in capital in excess of par value, common stock $..........200,000$

Assume that the company declares and immediately distributes a $100\%$ stock dividend. This event is recorded by capitalizing retained earnings equal to the stock's par value. Answer these questions about stockholders' equity as it exists after issuing the new shares. $($use the table provided$)$

a$.$ What is the retained earnings balance?

b$.$ What is the amount of total stockholders' equity?

c$.$ How many shares are outstanding?

Assume that the company implements a $2-$for$-1$ stock split instead of the stock dividend in part $1.$ Answer these questions about stockholders' equity as it exists after issuing the new shares. $($use the table provide$)$

b$.$ What is the the amount of total stockholders' equity?

c$.$ How many shares are outstanding?

Explain the difference, if any, to a stockholder from receiving new shares distributed under a large stock dividend versus a stock split.