3.- The company with the common equity accounts shown here has declared a stock dividend of 15 percent when the market value of its stock is $45 per share. What effects on the equity accounts will the distribution of the stock dividend have?

Calculate each new account

Common stock ($1 par value)= 410,000

Capital surplus = 2,150,000

Retained earnings = 5,320,000

Total Owners equity = 7,880,000