Final answer:
To reformulate the shareholders' equity account with a stock dividend or stock split, certain calculations need to be done. For a 50% stock dividend, the current number of shares is multiplied by 0.5. In the case of a 4-for-1 stock split, the current number of shares is divided by 4.
Step-by-step explanation:
A) To reformulate the shareholders' equity account with a 10% stock dividend, we need to calculate the number of additional shares to be issued. With a 10% stock dividend, we can find the number of additional shares by multiplying the current number of shares by 0.1. Once we have the number of additional shares, we can multiply it by the current market price per share to determine the increase in shareholders' equity. The reformulated shareholders' equity account will include the additional shares and the increase in equity resulting from the stock dividend.
B) To reformulate the shareholders' equity account with a 50% stock dividend, we follow the same process as in part A, but this time we multiply the current number of shares by 0.5 to find the number of additional shares. We then multiply this number by the current market price per share to determine the increase in shareholders' equity.
C) To reformulate the shareholders' equity account with a 4-for-1 stock split, we divide the current number of shares by 4 to find the new number of shares. The reformulated shareholders' equity account will include this new number of shares.