! Required information [The following information applies to the questions displayed below.] The stockholders' equity of TVX Company at the beginning of the day on February 5 follows. $ 600, Common stock-$10 par value, 150,000 shares authorized, 60,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 425, 550, $1,575, On February 5, the directors declare a 20% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $40 per share on February 5 before the stock dividend. 2. Prepare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity.) Answer is complete but not entirely correct. TVX COMPANY Stockholders' Equity Section of the Balance Sheet February 28 Common stock $ Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 400,000 60,000 X 270,000 730,000