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The owners equity accounts for Freya International are shown here: Common stock ($0.60 par value) $45,000 Capital surplus $365,000 Retained earnings $798,120 Total owners equity

The owners equity accounts for Freya International are shown here:

Common stock ($0.60 par value) $45,000

Capital surplus $365,000

Retained earnings $798,120

Total owners equity $1,208,120

a-1. If Freya stock currently sells for $20 per share and a 15 percent stock dividend is declared, how many new shares will be distributed? (Do not round intermediate calculations.)

a-2. Show how the equity accounts would change. (Do not round intermediate calculations)

Common stock $________________

Capital surplus $________________

Retained earnings $________________

Total owners equity $________________

b-1. If instead Freya declared a 20 percent stock dividend, how many new shares will be distributed?

New shares issued _________________

b-2. Show how the equity accounts would change (Do not round intermediate calculations)

Common stock $________________

Capital surplus $________________

Retained earnings $________________

Total owners equity $________________

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