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The owners equity accounts for Freya International are shown here: Common stock ($.40 par value) $ 40,000 Capital surplus 350,000 Retained earnings 768,120 Total owners

The owners equity accounts for Freya International are shown here:

Common stock ($.40 par value) $ 40,000
Capital surplus 350,000
Retained earnings 768,120
Total owners equity $ 1,158,120

a-1 If Freya stock currently sells for $25 per share and a 20 percent stock dividend is declared, how many new shares will be distributed? (Do not round intermediate calculations.)

New shares issued

a-2 Show how the equity accounts would change. (Do not round intermediate calculations.)

Common stock $
Capital surplus
Retained earnings
Total owners equity $

b-1 If instead Freya declared a 25 percent stock dividend, how many new shares will be distributed? (Do not round intermediate calculations.)

New shares issued

b-2 Show how the equity accounts would change. (Do not round intermediate calculations.)

Common stock $
Capital surplus
Retained earnings
Total owners equity $

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