E11-12 Analyzing Stock Dividends LO 11-3 LEVEL UP On December 31, the stockholders' equity section of the balance sheet of R&B Corporation reflected the following: $250,000 Common stock (par $10; 60,000 shares authorized; 25,000 issued and outstanding) Additional paid-in capital 12,000 Retained earnings 75,000 On February 1 of the following year, a 12 percent stock dividend was issued. The market value of the stock on February 1 was $18 per share. Required: 1. For comparative purposes, prepare the stockholders' equity section of the balance sheet (a) immediately before the stock dividend and (6) immediately after the stock dividend. TIP: Use two columns for the amounts in this requirement. 2. How would your answer to requirement 1 change if the stock dividend were 100%