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On August 14, 2020, Washington declared a 2-for-1 stock split. At the time of declaration, shares were selling for $114/share. Through the first two quarters of the fiscal year, Washington recorded a net loss of $6,500. How will Washington’s stockholders’ equity section change as a result of this information?

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Answer:

Follows are the description of the equity section change:

Explanation:

Washington announced a split stock of 2-for-1 on 14 August 2017, in which securities are exchanged for $114 per stock only at the time of announcement. It also reported a net loss of $6,500 in the first two quarters of its financial year. This amount of shares would rise to 30 000, as well as the par value would drop to 12,50 cents per month, and capital throughout the shareholders would fall to 528 500 dollars. As just a result of such knowledge, will the equity division of Washington transformation.

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