Required information

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.] 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, 120,000 shares authorized, 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

Exercise 11-6 Large stock dividend LO P2

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