Indicate whether each of the following statements about stockholders' equity is true or false.
1. A 2-for-1 stock split probably will double the monetary value of an investor's holdings on the date the split takes effect
2. The declaration and distribution of a stock dividend reduces retained earnings
3. The balance in the treasury stock account increases total stockholders' equity
4. If treasury stock that had been acquired by a company for $50 per share is resold for $60 per share, total assets and stockholders' equity will increase
5. Preferred stock of some corporations can be converted into common stock

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The Answer of Indicate whether each of the following statements about stockholders' equity is true or false.
1. A 2-for-1 stock split probably will double the monetary value of an investor's holdings on the date the split takes effect
2. The declaration and distribution of a stock dividend reduces retained earnings
3. The balance in the treasury stock account increases total stockholders' equity
4. If treasury stock that had been acquired by a company for $50 per share is resold for $60 per share, total assets and stockholders' equity will increase
5. Preferred stock of some corporations can be converted into common stock

Indicate Whether Each of the Following Statements About Stockholders' Equity