Question - At the beginning of the year, the stockholders' equity section of the balance sheet of Solutions Corporation reflected the following:
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Common stock ($12 par value; 65,000 shares authorized, 30,000 shares outstanding)
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$360,000
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Additional paid-in capital
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120,000
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Retained earnings
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580,000
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On February 1, the board of directors declared a 60 percent stock dividend to be issued April 30. The market value of the stock on February 1 was $15 per share. The market value of the stock on April 30 was $18 per share.
Required: For comparative purposes, prepare the Stockholders' Equity section of the balance sheet immediately before the stock dividend and immediately after the stock dividend.