On December 31, 2019, 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 17,000 shares)	$	170,000
Contributed surplus		11,200
Retained earnings		67,000

On February 1, 2020, the board of directors declared a 12 percent stock dividend to be issued on April 30, 2020. The market value of the shares on February 1, 2020, was $14.00 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.)

2. Which of the following statement(s) are true consequent upon the declaration of stock dividend? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply

Total assets will not change.unanswered

Total liabilities will not change.unanswered

Total shareholders' equity will change.unanswered

Retained earnings will be reduced by the amount of dividend.unanswered

Common stock and Additional paid-in capital will not change.