The stockholders' equity section of Vaughn Corporation consists of common stock ($10par) $2,600,000and retained earnings $531,000. A10% stock dividend (26,000shares) is declared when the market price per share is $15. Show the before-and-after effects of the dividend on the following.

(a)The components of stockholders' equity.(b)Shares outstanding.(c)Par value per share.

Before

Dividend

After

Dividend

Stockholders' equity$

$

Outstanding shares

Par value per share$

$