Question based on stock dividends

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Reference no: EM1375011

Stock Dividends The owner's equity accounts for Hexagon International are demonstrate here:
Common stock ($1 par value) $10,000
Capital surplus $ 180,000
Retained earnings $ 586,500

Total owner's equity $ 776,500

[A] If Hexagon stock currently sells for $25 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.

[B] If Hexagon declared a 25 percent stock dividend, how would the accounts change?

Reference no: EM1375011

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