Show how the proposed stock dividend would affect

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Reference no: EM131109021

The current stockholders' equity account for Hilo Farms is as follows:

Common stock (50,000 shares at $3 par) ...$150,000

Paid-in capital in excess of par .........250,000

Retained earnings ..............450,000

Total stockholders' equity ........$850,000

Hilo has announced plans to issue an additional 5,000 shares of common stock as part of its stock dividend plan.

The current market price of Hilo's common stock is $20 per share. Show how the proposed stock dividend would affect the stockholder's equity account.

Reference no: EM131109021

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