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  3. 8. the stockholders' equity section of the balance

8. The stockholders' equity section of the balance sheet for Scuba Gear Corporation...

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Accounting

8. The stockholders' equity section of the balance sheet for Scuba Gear Corporation appeared as follows before its recent
stock dividend:
Common stock, $5 par, 100,000 shares issued and outstanding $ 500,000
Additional paid-in capital 100,000
Retained earnings 725,000
Total stockholders' equity $1,325,000
Scuba Gear declared a 10% stock dividend when the market price per share was $8. After the stock dividend was
distributed, the components of the stockholders' equity section were:
Common Stock Add'l. Paid-in Capital Retained Earnings
a. $580,000 $100,000 $645,000
b. $550,000 $100,000 $675,000
c. $550,000 $130,000 $645,000
d. There would be no change in the components of stockholders equity.

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