What is the effect on retained earnings

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a) JKL Company has 800,000 shares, $1 Par Value Common Stock outstanding. JKL Company declares a 15% Common Stock Dividend when the market value of the Common Stock is $25 per share. What is the effect on Retained Earnings of this small stock dividend?

b) JKL Company has 800,000 shares, $1 Par Value Common Stock outstanding. JKL Company declares a 50% Common Stock Dividend when the market value of the Common Stock is $25 per share. What is the effect on Retained Earnings of this large stock dividend?

Reference no: EM131294909

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