=+LG 5 LG 6 P14–15 Stock split versus stock dividend Distilled Water Corporation is a company specializing in water purification and distributing bottled water to retailers. The corporation is considering a 3-for-2 stock split. The current stock price is $25 per share. The stockholders’ equity account is as follows:

Preferred stock $500,000 Common stock (150,000 shares at $6 par) $900,000 Paid-in capital in excess of par $2,850,000 Retained earnings $760,000 Total stockholders’ equity $5,010,000