On December 31, 2016, the shareholders equity section of the balance sheet of R & L Corporation reflected the following:

On February 1, 2017, the board of directors declared a 12 percent stock dividend to be issued on April 30, 2017. The market value of the shares on February 1, 2017, was $18 per share.

1. For comparative purposes, prepare the shareholders equity section of the balance sheet (a) immediately before the stock dividend and (b) immediately after the stock dividend. (Amounts to be deducted should be indicated with a minus sign.)

2. Which of the following statement(s) are true consequent upon the declaration of stock dividend? (Select all that apply)

2. Which of the following statement(s) are true consequent upon the declaration of stock dividend? (Select all that apply) Total assets will not change. Total liabilities will not change. Total shareholders' equity will change. Retained earnings will be reduced by the amount of dividend. common stock and Additional paid-in capital will not change