The company with the common equity accounts shown here has declared a stock dividend of 12 percent at a time when the market value of its stock is $73 per share. What effects on the equity accounts will the distribution of the stock dividend have?

Common stock ($1 par value) .......$ 120,000
Capital surplus ...................................912,300
Retained earnings ..........................2,347,200
Total owners’ equity ....................$3,379,500