On December 31, 2016, the shareholders' equity section of the balance sheet of R&L Corporation reflected the following: Common shares (no-par value: authorized 60,000 shares, outstanding 35,000 shares) Contributed surplus Retained earnings $350,000 13,000 85,000 On February 1, 2017, the board of directors declared a 8 percent stock dividend to be issued on April 30, 2017. The market value of the shares on February 1, 2017, was $23.00 per share. Required: 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.) Shareholders' Equity Before After Stock Adjustment Stock Dividend Dividend Contributed capital Total contributed capital Total shareholders equity 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. Retnined earnings will be reduced by the amount of dividend. Common stock and Additional paid-in capital will not change