Answers should be clearly labeled (for example, Answer = $2,300; Answer = A is preferred since ) Only if there are more than 6 decimal points, round up to 6 decimal points (for example, 21.237888743 => 21.237889; 21.233333333 => 21.233333). Use the following symbols for arithmetic operations:

Instructions: The owners equity accounts for Freya International are shown here: Common stock ($.50 par value) $42,500 Capital surplus 345,000 Retained earnings 758,120 Total owners equity $1,145,620 If Freya stock currently sells for $20 per share and a 26 percent stock dividend is declared, what is the capital surplus after the stock dividend?