Stock Dividend Comparison Although Oriole Company has enough retained earnings legally to declare a dividend, its working capital is low. The board of directors is considering a stock dividend instead of a cash dividend. The common stock is currently selling at $34 per share. The following is Oriole's current shareholders' equity: Common stock, $10 par $400,000 Additional paid-in capital on common stock 800,000 Total contributed capital $1,200,000 Retained earnings 1,300,000 Total shareholders' equity $2,500,000 Required: 1. Assuming a 15% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance. Oriole Company Stockholders' Equity Common stock, $10 par $ Additional paid-in capital on common stock Total contributed capital $ Retained earnings Total shareholders' equity $ 2. Assuming, instead, that a 30% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance. Oriole Company Shareholders' Equity Common stock, $10 par $ Additional paid-in capital on common stock Total contributed capital $ Retained earnings Total shareholders' equity $ 3. Retained earnings are reduced by a small stock dividend than by a large stock dividend because a large stock dividend is computed based on .