On January 1, Collins Corporation had 800,000 shares of $10 par value common stock outstanding.On March 31, the company declared a 10% stock dividend.The market value of the stock was $15 per share.As a result of this event,

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A stock dividend redistributes a portion of the company's retained earnings to its common stock and additional paid-in capital accounts but does not affect the total stockholders' equity. In this case, 80,000 shares (10% of 800,000) were issued as a stock dividend. The par value is $10, so the increase in common stock is $800,000 (80,000 shares * $10). The excess over par ($5 per share) amounts to $400,000 (80,000 shares * $5), which is credited to Paid-in Capital in Excess of Par. The total increase in stock dividends is the market value of the shares issued, $1,200,000 (80,000 shares * $15). Thus, all provided statements are correct.

On January 1, Collins Corporation Had 800,000 Shares of $10