CALCULATOR PRINTER VERSION BACK NEXT Do It! Review 11-3b Your answer is partially correct. Try again. Ivanhoe Company has had 4 years of record earnings. Due to this success, the market price of its 365,000 shares of $4 par value common stock has increased from $15 per share to $53. During this period, paid-in capital remained the same at $4,380,000. Retained earnings increased from $3,285,000 to $21,900,000. CEO Don Ames is considering either (1) a 15% stock dividend or (2) a 2-for-1 stock split. He asks you to show the before-and-after effects of each option on (a) retained earnings, (b) total stockholders' equity, and (c) par value per share. 1. Stock dividend - retained earnings 2901750 2. 2-for-1 stock split retained earnings Paid in capital Retained earnings 18,998.250 Total stockholder's equity T 26,250,000 26,280,00 Shares outstanding (b) Ivanhoe Company Original Balance After Dividend After Split Paid-in capital 4,380,000 7,281,750 T 4,380,000 Retained earnings 21,900,000 18,998,250] T 21,900,000 Total stockholder's equity 26,280,000 26,280,000 Shares outstanding 365,000 (c) 1. Stock dividend - par value per share 2. 2-for-1 stock split - par value per share