14 19. Gabriele Corporation issued a 2-for-1 stock split of its common stock which had a par vald of $10 before and $5.00 after the split. At what amount should retained earnings be reduced for the additional shares issued? a. b. c. d. 20. 21. There should be no reduction of retained earnings Par value Market value on the declaration date Market value on the payment date A feature common to both stock splits and stock dividends is A transfer to earned capital of a corporation. a. b. C. d. That there is no effect on total stockholders' equity. An increase in total liabilities of a corporation. A reduction in the contributed capital of a corporation. Assume a company pays off its dividend payable with cash. At the time of payment what is the effect on the following? Assume that before and after the payment working capital was a positive dollar amount. Working capital S Current ratio no effect increase increase a. b. PROD C. d. No effect No effect Decrease Decrease decrease