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.