(Answered) An owner of 500 shares of microshop company common stock

Accounting

An owner of 500 shares of Microshop Company common stock receives a stock dividend of 5 shares.

(a) What is the effect of the stock dividend on the stockholder's proportionate interest (equity) in the corporation?

(b) How does the total equity of 505 shares compare with the total equity of 500 shares before the stock dividend?

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