Mr. Gibson Corporation owned 20,000 shares of Old Towne Corp…

Mr. Gibson Corporation owned 20,000 shares of Old Towne Corporation’s $5 par value common stock. These shares were purchased in 2025 for $225,000. On September 15, 2029, Mr. Gibson declared a property dividend of one share of Old Towne for every ten shares of Mr. Gibson held by a stockholder. On that date, when the market price of Old Towne was $35 per share, there were 180,000 shares of Mr. Gibson outstanding. What NET reduction in retained earnings would result from this property dividend?

On January 1, 2029, Singing River, Inc. declared a 10% stock…

On January 1, 2029, Singing River, Inc. declared a 10% stock dividend on its common stock when the fair value of the common stock was $30 per share. Stockholders’ equity before the stock dividend was declared consisted of: Common stock, $10 par value, authorized 200,000 shares;        issued and outstanding 120,000 shares                                                          $1,200,000Additional paid-in capital on common stock                                                            150,000Retained earnings                                                                                                       700,000Total stockholders’ equity                                                                                     $2,050,000 What was the effect on Singing River’s retained earnings due to the above transaction?