On June 30, 2013, Stephans Company Showed the Following Data

question 108

Multiple Choice

On June 30, 2013, Stephans Company showed the following data on the equity section of their balance sheet:
$\begin{array}{|l|r|r|}\hline \text { Stockholders' equity } & & \\\hline \text { Common stock, } \$ 1 \text { par } & 100,000 \text { shares authorized } &\$40,000 \\\hline & 40,000 \text { shares issued } & \\\hline \text { Paid-in capital in excess of par } & & 260,000 \\\hline \text { Retained earnings } & & 940,000 \\\hline \text { Total stockholder's equity } & & \$ 1,240,000 \\\hline\end{array}$

On July 1, 2013, Stephans distributed a 5% stock dividend. The market value of the stock at that time was $13 per share.
- Following this transaction, how much would the total stockholders' equity be?

• A) $1,240,000
• B) $1,500,000
• C) $1,260,000
• D) $1,214,000

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