Squash Delight Inc. has the following balance sheet:

Assets
Cash	$	30,000
Accounts receivable		317,000
Fixed assets		862,000
Total assets	$	1,209,000
Liabilities
Accounts payable	$	262,000
Notes payable		56,000
Common stock (130,000 shares @ $2 par)		260,000
Capital in excess of par		100,000
Retained earnings		531,000
Total liabilities & owners' equity	$	1,209,000

The firms stock sells for $12 a share.

a.	Show the effect on the capital accounts of a two-for-one stock split. (Do not round intermediate calculations and round your answers to the nearest whole dollar.)

Common stock	$
Capital excess of par	$
Retained earnings	$
Total equity	$

b.	Show the effect on the capital accounts of a 10 percent stock dividend. Part b is separate from part a. In part b do not assume the stock split has taken place. (Do not round intermediate calculations and round your answers to the nearest whole dollar.)

Common stock	$
Capital excess of par	$
Retained earnings	$
Total equity	$

c.

Based on the balance in retained earnings, which of the two dividend plans is more restrictive on future cash dividends?

	Stock dividend
	Stock split