(Solution) - The company with the common equity accounts shown here has -(2025 Original AI-Free Solution)

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The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $35 per share. What effects on the equity accounts will the distribution of the stock dividend have?
Common stock ($1 par value).............. $ 406,000
Capital surplus................................1,340,000
Retained earnings............................3,427,000
Total owners' equity.......................$5,173,000