Donald & Stephie Investment Corporation has a common equity account shown below and has

declared a stock dividend of $15$ percent when the market value of its stock was $$74$ per share.

What effects on the equity accounts will the distribution of the stock dividend have on the

company$$s balance sheet accounts?

Equity Accounts Old New

Common stock $($$$1$ par value$)$ $$305,000$ $$350,750$

Capital surplus $$2,450,000$ $$5,789,750$

Retained earnings $$6,473,000$ $$3,087,500$

Total owners$$ equity $$9,228,000$ $$9,228,000$