3. Which of the following statements is incorrect? Dividends and Stock Splits On January 1, 2017, Svenberg Inc. 's Stockholders' Equity category appeared as follows: Preferred stock, $80 par value, The preferred stock is noncumulative and nonparticipating. During 2017, the following transactions occurred: a. On March 1, declared a cash dividend of $6,400 on preferred stock. Paid the dividend on April 1. b. On June 1 , declared an 8% stock dividend on common stock. The current market price of the common stock was $26. The stock was issued on July 1. c. On September 1 , declared a cash dividend of $0.70 per share on the common stock; paid the dividend on October 1 . d. On December 1 , issued a 3 -for-1 stock split of common stock, when the stock was selling for $30 per share. Required: 1. Explain each transaction's effect on the stockholders' equity accounts and the total stockholders' equity. 3. Which of the following statements is incorrect? Dividends and Stock Splits On January 1, 2017, Svenberg Inc. 's Stockholders' Equity category appeared as follows: Preferred stock, $80 par value, The preferred stock is noncumulative and nonparticipating. During 2017, the following transactions occurred: a. On March 1, declared a cash dividend of $6,400 on preferred stock. Paid the dividend on April 1. b. On June 1 , declared an 8% stock dividend on common stock. The current market price of the common stock was $26. The stock was issued on July 1. c. On September 1 , declared a cash dividend of $0.70 per share on the common stock; paid the dividend on October 1 . d. On December 1 , issued a 3 -for-1 stock split of common stock, when the stock was selling for $30 per share. Required: 1. Explain each transaction's effect on the stockholders' equity accounts and the total stockholders' equity