The company with the common equity accounts shown here has declared a 12 percent stock dividend at a time when the market value of its stock is $44 per share. What effects on the equity accounts will the distribution of the stock dividend have?
Common stock ($1 par value) ............ $165,000
Capital surplus .................. 1,512,000
Retained earnings ................ 2,865,000
Total owners’ equity .............. $ 4,542,000