Jalisco, Incorporated, Had Issued and Outstanding 250,000 Shares of $8

Essay

Jalisco, Incorporated, had issued and outstanding 250,000 shares of $8 par value common stock at January 1, Year 1 with a retained earnings balance of $750,000. Jalisco issued a 12% stock dividend to its common shareholders. At the time of the dividend the market value of the stock was $17 per share.Required:What is the total dollar amount of the stock dividend? How many shares are outstanding after the stock dividend?