A. Kitty Hawk Airlines recently declared a 10 percent stock dividend. Prior to the stock dividend, the equity section on Kitty Hawks balance sheet was:

Common stock (12,000 shares, outstanding, $2 par value	$24,000
Additional paid-in capital	16,000
Retained earnings	10,000
Total common shareholder's equity	$50,000

Kitty Hawks stock currently sells for $5 per share. Show what the equity section of the balance sheet will look like after the stock dividend is initiated.

B. Suppose that Kitty Hawk Airlines (see Problem A.) decided to initiate a 5-for-1 stock split rather than the stock dividend described in the problem. Show what the equity section of the balance sheet will look like after the stock split takes place.