The owners’ equity accounts for Southern Lights International are shown here:

Common stock ($1 par value)............ $ 22,000
Capital surplus ........................................95,000
Retained earnings ................................632,800
Total owners’ equity ..........................$749,800

a. If the company’s stock currently sells for $33 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.

b. If the company declared a 25 percent stock dividend, how would the accounts change?