The DeWitt Company's shareholders' equity account (book value) as of December 31, 20X1, is as follows:

Common stock ($5 par value; 1,000,000 shares)……………………. $ 5,000,000

Additional paid-in capital…………………….……………………...                 5,000,000

Retained earnings…………………….………………………………                  15,000,000

Total shareholders' equity…………………….………………………          $25,000,000

Currently, DeWitt is under pressure from shareholders to pay some dividends. DeWitt's cash balance is $500,000, all of which is needed for transactions purposes. The stock is trading for $7 a share.

a. Reformulate the shareholders' equity account if the company pays a 15 percent stock dividend.

b. Reformulate the shareholders' equity account if the company pays a 25 percent stock dividend.

c. Reformulate the shareholders' equity account if the company declares a 5-for-4 stock split.