On June 30, Sharper Corporations stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend.

Common stock$10 par value, 86,000 shares issued and outstanding	$ 860,000
Paid-in capital in excess of par value, common stock	380,000
Retained earnings	750,000
Total stockholders equity	$ 1,990,000

(1) Prepare the updated stockholders' equity section after the distribution is made. (2) Compute the number of shares outstanding after the distribution is made.