The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $64 per share. What effects will the distribution of the stock dividend have on the equity accounts?

Common stock ($1 par value) ................... $ 225,000
Capital surplus .............................................. 535,000
Retained earnings ...................................... 2,968,500
Total owners’ equity ................................. $3,728,500