Recording Small and Large Stock Dividends Why: Small stock dividends are capitalized using the stock's market value, while large stock divi- dends are capitalized at the stock's par value. Information: On May 18, 2013, Arlington Corporation has 6,000,000 shares of S10 par common stock outstanding. This stock is currently trading at S12 per share. Required: 1. Determine how many new shares are issued and prepare the necessary journal entry assuming Arlington declares and pays a 5% stock dividend. 2. Determine how many new shares are issued and prepare the necessary journal entry assuming Arlington declares and pays a 30% stock dividend