The stockholders' equity section of Ayayai Corp's balance sheet consists of common stock $($ $$7$ par$)$ $$840,000$ and retained earnings $$400,000.$ A $10\%$ stock dividend $(12,000$ shares$)$ is declared when the market price per share is $$15.$

$($a$)$ Show the before$-$and$-$after effects of the dividend on the components of stockholders' equity.

$($b$)$ Show the before$-$and$-$after effects of the dividend on the shares outstanding.

Before Dividend After Dividend

Outstanding shares