Oriole Company has had 4 years of record earnings. Due to this success, the market price of its 380,000 shares of $2 par value common stock has increased from $13 per share to $53. During this period, paid-in capital remained the same at $2,280,000. Retained earnings increased from $1,710,000 to $11,400,000. CEO Don Ames is considering either (1) a 15% stock dividend or (2) a 2-for-1 stock split. He asks you to show the before-and-after effects of each option on (a) retained earnings, (b) total stockholders' equity, and (c) par value per share. (a) 1. 2. (b) Stock dividend - retained earnings 2-for-1 stock split - retained earnings Paid-in capital Retained earnings $ Total stockholders' equity $ Original Balances I 741000 After Dividend LA After Split

Oriole Company has had 4 years of record earnings. Due to this success, the market price of its 380.000 shares of $2 par value common stock has increased from $13 per share to $53. During this period, pald in eapital remained the some at $2,280,000. Retained earnings increased from $1,710,000 to $11,400,000. CEO Don Ames is considering either (1) a 15\% stock dividend or (2) a 2-for -1 stock split. He asks you to show the before-and-after effects of each option on (a) retained earnings, (b) total stockholders' equity, and (c) par value per share. (a) (b) Pald -in capital Retained earnings Thares outstanding (c) 1. Stockdividend-par value per share $ 2. 2-for-1 stock split - par value per share