On October 31, the stockholders equity section of Sunland Companys balance sheet consists of common stock $ 784,000 and retained earnings $ 408,000. Sunland is considering the following two courses of action:

(1)		Declaring a 5% stock dividend on the 98,000 $ 8 par value shares outstanding
(2)		Effecting a 2-for-1 stock split that will reduce par value to $ 4 per share.

The current market price is $ 16 per share. Prepare a tabular summary of the effects of the alternative actions on the companys stockholders equity and outstanding shares.

Sunland Companys Balance Sheet
		Before Action		After Stock Dividend		After Stock Split
Stockholders equity
Paid-in capital		$784,000		$		$
Retained earnings		$408,000		$		$
Total stockholders equity		$1192000		$		$
Outstanding shares		$98,000		$		$