Stock dividend-Firm Columbia Paper has the following stockholders' equity account. The firm's common stock has a current market price of $35 per share. Preferred stock Common stock (12,000 shares at $3 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity a. Show the effects on Columbia of a 20% stock dividend. b. In light of your answers to part a, discuss the effects of stock dividend on stockholders' equity. $110,000 36,000 384,000 90,000 $620,000

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