• The owners' equity accounts for Trans World International are shown here:

Common stock (1 par value) 45,000

capital surplus 125,00

retained earnings 580,000

total owners equity 750,000

1. 1. If Trans World stock currently sells for $42 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.

   2. If Trans World declared a 25 percent stock dividend, how would the accounts change?