Stock Dividends. The company with the common equity accounts shown here has declared a 10 percent stock dividend at a time when the market value of its stock is $48 per share. What effects on the equity accounts will the distribution of the stock dividend have?
|
Common stock ($1 par value) |
$ 425.000 |
|
Capital surplus |
1,430.000 |
|
Retained earnings |
3,250.000 |
|
Total owners” equity |
$5.105,000 |