1. United Equipment Corp. shows the following capital accounts before a 10 percent stock dividend.

Common stock (200,000 shares at $5 par) ............ $1,000,000 Capital In excess of par .......................................... 600,000 Retained earnings ................................................... 2,400,000 Net worth ............................................................. $4,000,000 The firm’s shares have a market price of $20. Show the revised capital accounts after the 10 percent stock dividend.