9. i._____

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

a. Stockholders equity is decreased

b. Retained earnings is increased

c. Additional paid in capital is decreased

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

ii._____

A corporation has 50,000 shares of $100 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will be:

a. 200,000 shares.

b. 50,000 shares.

c. 250,000 shares.

d. 12,500 shares.

______10 Joes (Investor) Company owns 30% of the stock of Bird (Investee) Company. Bird Company reports profits of $200,000. Bird also pays $100,000 dividend to its shareholders during the same period. Joes Company will report equity income of:

a.	$30,000
b.	$60,000
c.	$20,000
d.	$140,000