Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating some kind of dividend. The capital accounts for the firm are as follows: Common stock (2,100,000 shares at $5 par) $ 10,500,000 Capital in excess of par* 3,000,000 Retained earnings 26,500,000 Net worth $ 40,000,000 *The increase in capital in excess of par as a result of a stock dividend is equal to the new shares created times (Market price Par value). The companys stock is selling for $20 per share. The company had total earnings of $4,200,000 during the year. With 2,100,000 shares outstanding, earnings per share were $2. The firm has a P/E ratio of 10.

a. What adjustments would have to be made to the capital accounts for a 10 percent stock dividend? Show the new capital accounts. (Do not round intermediate calculations. Input your answers in dollars, not millions (e.g. $1,230,000).)