An owner of 250 shares of Reynolds Spring Company common stock receives a stock dividend of 20

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An owner of 250 shares of Reynolds Spring Company common stock receives a stock dividend of 20 shares. (a) What is the effect of the stock dividend on the stockholder’s proportionate interest (equity) in the corporation? (b) How does the total equity of 270 shares compare with the total equity of 250 shares before the stock dividend?

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