Please explain number 7 and 8 please

stockholders' equity. C. A 2-for-1 common stock split increases both the number of common shares outstanding and total stockholders' equity. D. A 30% common stock dividend increases the number of common shares outstanding and does not affect total stockholders' equity. 7. A company reported total stockholders' equity of $540,000 on its balance sheet dated December 31, 2014. During the year ended December 31, 2015, the company reported net income of $60,000, declared and paid a cash dividend of $18,000, declared and distributed a 10% stock dividend with a $15,000 total market value, sold treasury stock costing $12,000 for proceeds of $15,000, and issued additional common stock for $70,000. What is total stockholders' equity as of December 31, 2015? A. $640,0 B. $670,000 C. $667,000 D. $655,000 Practice Questions - Set S 8. Katie Company has 1,000,000 common shares authorized and has 40,000 shares of $2 par value common stock issued and outstanding prior to a 40% common stock dividend declaration and distribution. The market value of the Katie Co. stock on the declaration date was $10. Which of the following journal entries correctly accounts for the stock dividend declaration? A. Retained earnings160,000 Common stock 160,000 Common stock.32,000 Additional paid-in capital 128,000 B. Common stock.32,000 Additional paid-in capital..128,000 Retained earnings 160,000 C. Retained earningsmmm.. 3 32,000 D. Common stock...maumominmunm Retained earnings...32,000