1. The stockholders' equity section of the balance sheet for Pokagon Corporation appeared as follows before its recent stock dividend:

Common stock, $10 par, 10,000 shares issued and outstanding	$ 100,000
Additional paid-in capital - common	120,000
Retained earnings	150,000
Total stockholders' equity	$370,000

Pokagon declared a 10% stock dividend when the market price per share was $20. After the stock dividend was distributed, the components of the stockholders' equity section were:

Select one:

A.

Common Stock	Additional Paid-in Capital	Retained Earnings
$100,000	$130,000	$170,000

B.

Common Stock	Additional Paid-in Capital	Retained Earnings
$100,000	$130,000	$130,000

C.

Common Stock	Additional Paid-in Capital	Retained Earnings
$110,000	$130,000	$130,000

D. There would be no change in the components of stockholders' equity.

2. The following selected list of accounts with their normal balances was taken from the general ledger of Wallace Company as of December 31, 2016:

Common stock, $1 par Wallace	$ 380,000
Retained earnings	262,000
Paid-in capital in excess of par - preferred	70,000
Treasury Stock	330,000
Preferred stock, $100 par	600,000
Paid-in capital in excess of par -common	760,000

Given above information, at the end of 2016:

Select one:

A. Total Paid in Capital is $2,140,000, and Total Stockholders' equity is $2,402,000

B. Total Paid in Capital is $1,480,000, and Total Stockholders' equity is $1,742,000

C. Total Paid in Capital is $1,480,000, and Total Stockholders' equity is $1,218,000

D. Total Paid in Capital is $1,810,000, and Total Stockholders' equity is $1,742,000