Crane Company has had $4$ years of net income. Due to this success, the market price of its $300,000$ shares of $$3$ par value common

stock has increased from $$10$ per share to $$50.$ During this period, paid$-$in capital remained the same at $$2,200,000.$ Retained earnings

increased from $$1,700,000$ to $$11,000,000.$ President E$.$ Rife is considering either a $12\%$ stock dividend or a $2-$for$-1$ stock split.

$($a$)$

He asks you to show the before$-$and$-$after effects of each option on retained earnings.

Retained earnings after stock dividend

Retained earnings after stock split

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$