The owners equity accounts for Investo Unlimited are shown here:

Common stock ($.75 par value) $ 50,000

Capital surplus $215,000

Retained earnings $642,700

Total owners equity $882,700

a. If the companys stock currently sells for $42 per share and a 15 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.

b. If the company declared a 40 percent stock dividend, how would the accounts change?