On October 31, the stockholders equity section of Heins Company consists of common stock $325,000and retained earnings $895,000. Heins is considering the following two courses of action: (1) declaring a6% stock dividend on the32,500, $10par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5per share. The current market price is $14per share. Prepare a tabular summary of the effects of the alternative actions on the components of stockholders equity, outstanding shares, and par value per share.

Before Action	After Stock Dividend	After Stock Split
Stockholders equity
Paid-in capital
Common stock	$ 325000	$	$
In excess of par
Total paid-in capital
Retained earnings	895000
Total stockholders equity	$ 927500	$	$
Outstanding shares
Par value per share	$	$	$

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