Exercise 237 (Part Level Submission) Giraldi Corporation's stockholders' equity section at December 31, 2016, appears below: Stockholder's equity Paid-in capital Common stock, $10 par, 60,000 outstanding Paid-in capital in excess of par $600,000 162,500 Total paid-in capital Retained earnings Total stockholder's equity $762,500 150,000 $912,500 On June 30, 2017, the board of directors of Giraldi Corporation declared a 15% stock dividend, payable on July 31, 2017, to stockholders of record on July 15, 2017 The fair value of Giraldi Corporation's stock on June 30, 2017, was $16 On December 1, 2016, the board of directors declared a 2 for 1 stock split effective December 15, 2017. Giraldi Corporation's stock was selling for $18 on December 1, 2017, before the stock split was declared. Par value of the stock was adjusted. Net income for 2017 was $230,000 and there were no cash dividends declared