on december 31 2017 nehpton ltd reported 3 million of common shares and 6 million of retained earnings on that date

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Required:
a. Prepare the equity section of Nehpton’s balance sheet under the following conditions:
i. As originally reported;
ii. If management declared a 10 percent stock dividend;
iii. If management declared a two-for-one stock split.
b. Explain how earnings per share would be affected in each case. Which situation would be most attractive to the shareholders?