A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9 per share. Subsequently, the company declared and issued a 10% stock dividend. The market price of the shares is $20 per share.

53. What is the effect of the dividend on Paid in Capital?

a. Paid-in Capital decreased

b. Paid-in Capital increased

c. Paid-in Capital remained the same

d. None of the above

54. Refer to the previous question. By what amount did Paid in Capital change, if at all? ( If the account balance or amount did not change, state your answer as "$0")

55. What is the effect of the dividend on the number of shares outstanding?

a. The number decreased

b. The number increased

c. The number remained the same

d. None of the above

56. Refer to the previous question. By what amount did the number of shares change, if at all? (If the account or amount did not change, state your answer as "$0")

57. What is the effect of the dividend on total equity and total assets?

a. Total equity decreased, and total assets decreased

b. Total equity decreased, and total assets increased

c. Total equity increased, and total assets decreased

d. Total equity increased, and total assets increased

e. None of the above