UCONN Group has the following items in its equity section of the balance sheet:

Common Stock 5,000,000 shares authorized, 1,200,000 issued $6,000,000

Capital Surplus $3,600,000

Treasury Stock on Common 100,000 shares $1,320,000

Cumulative Preferred Stock 17,000,000 authorized {8%} $2 par $12,000,000

Treasury Stock on Preferred Stock 250,000 shares $5,000,000

Retained Earnings $30,180,000

Answer following three questions:

1. If UCONN Group were to provide for a 10% common stock dividend, then how many new shares are to be mailed to existing common stock shareholders?

2. Assume in question [1] the market price of the common stock was $26 at the time of the stock dividend announcement. What is the journal entry to record the stock dividend?

3. What is total dollar amount of equity per the items listed on the current balance listed on the top of this page?