The owners’ equity accounts for Vulcano International are shown here:

Common stock ($.50 par value) ............ $ 20,000
Capital surplus ......................................... 210,000
Retained earnings ................................... 587,300
Total owners’ equity ............................ $ 817,300

a. If the company’s stock currently sells for $42 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?