PROBLEM $11\mathrm{.}9$B Reporting Stockholders$$ Equity with Treasury Stock and Stock Splits LO$11-4,$ LO$11-5,$ LO$11-7,$ LO$11-8,$ LO$11-9$ Early in $2020,$ Laird Industries was formed with authorization to issue $150,000$ shares of $$20$ par value common stock and $10,000$ shares of $$100$ par value cumulative preferred stock. During $2020,$ all the preferred stock was issued at par, and $80,000$ shares of common stock were sold for $$35$ per share. The preferred stock is entitled to a dividend equal to $6$ percent of its par value before any dividends are paid on the common stock. During its first five years of business $(2020$ through $2024),$ the company earned income totaling $$3,800,000$ and paid dividends of $60$ cents per share each year on the common stock outstanding. On January $2,2022,$ the company purchased $1,000$ shares of its own common stock in the open market for $$40,000.$ On January $2,2024,$ it reissued $600$ shares of this treasury stock for $$30,000.$ The remaining $400$ shares were still held in treasury at December $31,2024.$ Instructions Prepare the stockholders$$ equity section of the balance sheet at December $31,2024.$ Include a supporting schedule showing: $(1)$ your computation of any paid$-$in capital on treasury stock and $(2)$ retained earnings at the balance sheet date. $($Hint: Net income increases retained earnings, whereas dividends reduce retained earnings. Dividends are not paid on shares of stock held in treasury.$)$ Page $523$As of December $31,2024,$ compute the company$$s book value per share of common stock. $($Hint: Book value per share is computed only on the shares of stock outstanding.$)$ At December $31,2024,$ shares of the company$$s common stock were trading at $$56.$ Explain what would have happened to the market price per share had the company split its stock $2-$for$-1$ at this date. Also explain what would have happened to the par value of the common stock and to the number of common shares outstanding.