Question: Refer to the situation described in BE10-11, but assume a 2-for-1 stock split instead of the 100% stock dividend. Explain why Sandals did not record a 2-for-1 stock split. What are the number of shares, par value per share, and market price per share immediately after the 2-for-1 stock split?
BE10-11: On June 30, the board of directors of Sandals, Inc., declares a 100% stock dividend on its 20,000, $1 par, common shares. The market price of Sandals common stock is $25 on June 30. Record the stock dividend.