The stockholders' equity section of the Desi Corporation consists of common stock ( \(\$ 10\) par) \(\$ 1,000,000\) and retained earnings \(\$ 400,000\). A \(10 \%\) stock dividend ( 10,000 shares) is declared when the market value per share is \(\$ 12\). Show the before and after effects of the dividend on

(a) the components of stockholders' equity, and

(b) shares outstanding.