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Hogan Corporation issued a 5 percent stock dividend on 20,000 shares of its $10 par common stock. At the time of the dividend, the market value of the stock was $15 per share.
Required:
a. Compute the amount of the stock dividend.
b. Show the effects of the stock dividend on the financial statements using a horizontal statements model like the following one:
c. Prepare the journal entry to record the stock dividend.
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