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FinanceQ&A LibraryThe company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $43 per share. What effects on the equity accounts will the distribution of the stock dividend have? Common stock ($1 par value) Capital surplus Retained earnings Total owners’ equity $ 385,000 846,000 3,720,800 $4,951,800Start your trial now! First week only $4.99!*arrow_forward*

Question

The company with the common equity accounts shown

here has declared a 15 percent stock dividend when the market value of its stock is

$43 per share. What effects on the equity accounts will the distribution of the stock

dividend have?

Common stock ($1 par value)

Capital surplus

Retained earnings

Total owners’ equity

$ 385,000

846,000

3,720,800

$4,951,800

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