Consider the following transactions for Lavigne Corp. Assume Lavigne Corp, uses the cost method for any treasury stock transactions. For each of the following transactions indicate the effect of the transaction on Retained earnings, and Total shareholders equity. 1 is for increase, D in for decrease, and NE means no effect on RE and no effect on total equity. For example, the choice NE, I means no effect on retained earnings, increase to total equity. Remember that items that effect retained earnings also effect shareholders equity. as retained earning is an equity account (However, if there is another equity account with an offsetting change, it is possible to have an effect on RE with no effect on total equity.) Lavigne issues 3,000 shares of $1000 par preferred stock for $3,000,000. Lavigne declares a $2 per share dividend on common stock (assume the preferred shareholders b. D, D were paid their dividend earlier in the year). Lavigne pays the dividend in Q2 Lavigne purchases 100 shares of its own stock from shareholders for $1,000. The stock was issued for $300 originally. Lavigne declares a 2-for-1 stock split