25-A company whose stock is selling for $45 has the following balance sheet:

Assets $32,000 Liabilities $10,000

Common stock 6,000

($6 par; 1,000 shares issued)

Additional paid-in capital 2,000

Retained earnings 14,000

a. Construct a new balance sheet showing a 3 for 1 stock split. What is the new price for the stock?

b. What would be the balance sheet if the firm paid a 10 percent stock dividend (instead of the stock split)?