Do It! Review 11-3b Crane Company has had 4 years of record earnings. Due to this success, the market price of its 385,000 shares of $2 par value common stock has increased from $13 per share to $53. During this period, paid-in capital remained the same at $2,310,000. Retained earnings increased from $1,732,500 to $11,550,000. 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 2. 2-for-1 stock split retained earnings Crane Company Original Balance After DividendAfter Split Paid-in capital Retained earnings Total stockholder's equity s Shares outstanding 1. Stock dividend - par value per share 2. 2-for-1 stock split par value per share