Suppose that Kitty Hawk Airlines (see Problem 13–19) decided to initiate a 5-for-1 stock split rather than the stock dividend described in the problem. Show what the equity section of the balance sheet will look like after the stock split takes place.

Data from 13-19

Kitty Hawk Airlines recently declared a 10 percent stock dividend. Prior to the stock dividend, the equity section on Kitty Hawk’s balance sheet was:

Common stock (12,000 shares outstanding, $2 par value) ………..…...…….   $24,000

Additional paid-in capital ………………………………………………………………………     16,000

Retained earnings …………………………………………………………………………………    10,000

Total common shareholders’ equity ……………………………………………….……    $50,000