The owners’ equity accounts for Vase Corporation are shown here: Common stock (€3 par value) Capital surplus Retained earnings Total owners’ equity €900,000 1,200,000 2,600,000 4,700,000 Instructions:...

The owners’ equity accounts for Vase Corporation are shown here:

Common stock (€3 par value) Capital surplus
Retained earnings
Total owners’ equity

€900,000 1,200,000 2,600,000 4,700,000

Instructions:

1. If the company’s stock currently sells for €58 per share and a 15 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.

2. Assume that instead of a stock dividend, the company declares a three-for-one stock split. How the equity accounts will change? How many shares are outstanding now? What is the new par value per share?