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*E12-26 On October 1, Chile Corporation’s stockholders’ equity is as follows.

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On October 1, Chile Corporation’s stockholders’ equity is as follows.

Common stock, $5 par value $200,000
Paid-in capital in excess of par value 25,000
Retained earnings 75,000
Total stockholders’ equity $300,000
On October 1, Chile declares and distributes a 10% stock dividend when the market value of the
stock is $15 per share.

Instructions

(a) Compute the book value per share (1) before the stock dividend and (2) after the stock dividend.
(Round to two decimals.)

(b) Indicate the balances in the three stockholders’ equity accounts after the stock dividend
shares have been distributed.

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