Question $5$ of $7$

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Waterway Company has had $4$ years of net income. Due to this success, the market price of its $474,500$ shares of $$5$ par value common stock has increased from $$12$ per share to $$52.$ During this period, paid$-$in capital remained the same at $$2,390,000.$ Retained earnings increased from $$1,860,000$ to $$11,300,000.$ President $E.$ Rife is considering either a $14\%$ stock dividend or a $2-$for$-1$ stock split.

He asks you to show the before$-$and$-$after effects of each option on retained earnings.

Retained earnings after stock dividend

$

Retained earnings after stock split

$

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He asks you to show the before$-$and$-$after effects of each option on total stockholders' equity.

Total stockholders' equity after stock dividend

$