Delta IncHad 1,000,000 Shares of $4 Par Value Common Stock Authorized

Essay

Delta Inc.had 1,000,000 shares of $4 par value common stock authorized.On December 31,2015,there were 400,000 shares issued and outstanding.The market value of its common stock on that date was $100 per share.On January 5,2016,the board of directors declared a stock dividend.
Required:
Part a.Assume that you have 100 shares of Delta Inc.common stock.Determine how many shares will you have after a 100% stock dividend.
Part b.Briefly explain the how a 100% stock dividend affects the stockholders' equity accounts and the total resources of the company.(Do not quantify the impacts or prepare a journal entry.)
Part c.Assume instead that the board declared a 10% stock dividend.Briefly explain how that 10% stock dividend affects the stockholders' equity accounts and the total resources of the company.(Do not quantify the impacts or prepare a journal entry.)
Part d.Identify three possible explanations for the declaration of a stock dividend.