The shareholders equity section of the 30 June 2022 balance sheet for Shah

Interiors before its recent share dividend: Ordinary shares, 100 000 shares Retained earnings Total shareholders' equity

$600000

725000

S1 325000

Shah declared a 10% share dividend when the market price per share was $8.00.

After the share dividend, the components of Shah's shareholders' equity section were:

1. Ordinary shares $600000; Retained earnings $725000
2. Ordinary shares $650000; Retained earnings $805000
3. Ordinary shares $710000; Retained earnings $805000
4. Ordinary shares $680000; Retained earnings $645000