Asked by linda farran on Jul 19, 2024

Verified

Which of the following show the proper effect of a stock split and a stock dividend? $\begin{array}{cccccccccccc}& & & & \text{ Item}& & & & & \text{ Stock Split }& & \text{ Stock Dividend }\end{array}$
A) $\begin{array}{ccccccc}\text{ Total paid-in capital }& & & \text{ Increase }& & & \text{ Increase }\end{array}$
B) $\begin{array}{cccccc}\text{ Total retained earnings }& & \text{ Decrease }& & & \text{ Decrease }\end{array}$
C) $\begin{array}{ccccc}\text{ Total par value (common) }& \text{ Decrease }& & & \text{ Increase }\end{array}$
D) $\begin{array}{cccccccc}\text{ Par value per share }& & & & \text{ Decrease }& & & \text{ No change }\end{array}$