7. Quirk Corporation issued a 100% stock dividend of its common stock which had a par value of $10 before and after the dividend. At what amount should retained earnings be reduced for the additional shares issued? a. There should be no reduction of retained earnings. b. Par value c. Fair value on the declaration date d. Fair value on the payment date 8. What effect does the issuance of a 2-for-1 stock split have on each of the following? Par Value per Share a. No effect b. Increase c. Decrease d. Decrease Retained Earnings No effect No effect No effect Decrease