Spears Company has had 4 years of record earnings. Due to this success, the market price of its 400,000 shares of $2 par value common stock has increased from $6 per share to $50. During this period, paid-in capital remained the same at $2,400,000. Retained earnings increased from $1,800,000 to $12,000,000. 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 $ Entry field with incorrect answer 2. 2-for-1 stock split - retained earnings $ Entry field with incorrect answer (b) Spears Company Original Balance After Dividend After Split Paid-in capital $ Entry field with correct answer $ Entry field with incorrect answer $ Entry field with correct answer Retained earnings Entry field with correct answer Entry field with incorrect answer Entry field with correct answer Total stockholders equity $ Entry field with correct answer $ Entry field with correct answer $ Entry field with correct answer Shares outstanding Entry field with correct answer Entry field with correct answer Entry field with correct answer (c) 1. Stock dividend - par value per share $ Entry field with incorrect answer 2. 2-for-1 stock split - par value per share $ Entry field with incorrect answer