E12.13 (LO 3) On October 31, the equity section of Lucerne AG consists of share capitalordinary CHF500,000 and retained earnings CHF900,000. Lucerne is considering the following two courses of action: (1) declaring a 5% share dividend on the 50,000, CHF 10 par value shares outstanding, or (2) effecting a 2-for-1 share split that will reduce par value to CHF5 per share. The current market price is CHF14 per share. Instructions Prepare a tabular summary of the effects of the alternative actions on the components of equity, out- standing shares, and par value per share. Use the following column headings: Before Action, After Share Dividend, and After Share Split. Problem Two: E12.13 on page 12-46. After After Before Share Share Action Dividend Split Equity Share capital-ordinary CHF 500,000 CHF 535,000(1) CHF 500,000 Retained earnings 900,000 865,000(2) 900,000 Total equity CHF1,400,000 CHF1,400,000 CHF1,400,000 Outstanding shares 50,000 52,500 100,000 (1)5% of 50,000 = 2,500 X (CHF14) = 35,000 (2)CHF900,000 - 35,000