On January 15, 2020, the board of directors of Miz Corporation voted to consolidate its outstanding common shares on the basis of one post-consolidation common share for every 20 pre-consolidation common shares (that is, a one-for-twenty reverse stock split). Miz Corporation common shares had a market price on January 15, 2020, of $0.60 per share. The shareholders’ equity section of the statement of financial position of Miz Corporation at December 31, 2019, is given below:

Shareholders’ equity:
Common shares, unlimited authorized, 10,000,000 shares
issued and outstanding ...............................................    $50,000,000
Retained earnings (deficit) ..........................................        (5,000,000)
Total shareholders’ equity ...........................................    $45,000,000

Required

a. Determine the number of shares that are outstanding after the consolidation.

b. What would be the expected market price for the shares after the consolidation?

c. Show the shareholders’ equity section of the company immediately after the one-for-twenty reverse stock split.

d. What accounting entry will be required for the consolidation?