On January 1 Key Corporation had 2000000 shares of $10 par value common stock outstanding. On March 31 the company declared a 20% stock dividend. Market value of the stock was $15/share. As a result of this event

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The stock dividend increases the number of shares outstanding and decreases the par value per share. The total par value of the shares remains the same, so there is no change to the Paid-in Capital in Excess of Par account. The total stockholders' equity is also unaffected, as the increase in the number of shares is offset by the decrease in the par value per share. The Stock Dividends account is increased by the market value of the shares issued, which is $6,000,000.

On January 1 Key Corporation Had 2000000 Shares of $10