3. i._____

What is the total effect of a stock dividend on the balance sheet?

a. Stockholders equity is decreased

b. Big effect total stockholders equity increases, and total number of shares increases

c. No effect total stockholders equity stays the same, but total number of shares increases

d. Additional paid in capital is decreased

e. Retained earnings is increased

ii._____

A corporation has 592,000 shares of $100 par value stock outstanding. If the corporation issues a 2-for-1 stock split, the number of shares outstanding after the split will be:

a. 296,000 shares.

b. 1,184,000 shares.

c. 592,000 shares.

d. 888,000 shares.