Question 5 of 10 View Policies Show Attempt History Current Attempt in Progress Your answer is partially correct 0.38/1 E I Cullumber Company has had 4 years of record earnings. Due to this success, the market price of its 505,000 shares of $2 par value common stock has increased from $14 per share to $52. During this period, paid-in capital remained the same at $3,030,000. Retained earnings increased from $4,545,000 to $30,300,000. 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 Stock dividend-retained earnings $ 30300000 2 2-for-1 stock split-retained earnings $ 26361000 (b) Original Balances After Dividend Paid-in capital 6060000 $ Retained earnings 30300000 After Split 9999000 S 26361000 Total stockholders' equity 36360000 $ 36360000 Shares outstanding 505000 580750 6060000 30300000 36360000 1010000