XYZ Corporation has the following equity accounts:

• Common stock: $1,000,000 (par value $10, 100,000 shares authorized, 50,000 shares issued)
• Paid-in capital in excess of par: $500,000
• Retained earnings: $300,000
• Treasury stock: $200,000 (5,000 shares at $40 each)

Requirements:

(a) Prepare the stockholders’ equity section of the balance sheet. (b) Calculate the total stockholders’ equity. (c) Determine the impact of a 10% stock dividend. (d) Discuss the accounting treatment of treasury stock transactions.