On october 31, the stockholders� equity section of pele company�s balance sheet consists of common stock $648,000 and retained earnings $400,000.

pele is considering the following two courses of action:

(1) declaring a 5% stock dividend on the 81,000 $8 par value shares outstanding
(2) effecting a 2-for-1 stock split that will reduce par value to $4 per share.

the current market price is $17 per share.

prepare a tabular summary of the effects of the alternative actions on the company�s stockholders� equity and outstanding shares.

Martinez company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 pretax financial income $873,000 $866,000 $947,000 (2017' 2018, 2019) excess depreciation expense on tax return (29,400 ) (39,000 ) (9,600 ) (2017' 2018, 2019) excess warranty expense in financial income 20,000 9,900 8,300 (2017' 2018, 2019) taxable income $863,600 $836,900 $945,700(2017' 2018, 2019) the income tax rate for all years is 40%. instructions: a. prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. b. assuming there were no temporary differences prior to 2016, indicate how deferred taxes will be reported on the 2016 balance sheet. button's warranty is for 12 months. c. prepare the income tax expense section of the income statement for 2017, beginning with the line, "pretax financial income."