Question - The stockholders' equity of Benton Company at July 31, 2007 is presented below:
Common stock, par value $20, authorized 400,000 shares; issued and outstanding 160,000 shares $3,200,000
Paid-in capital in excess of par $160,000
Retained earnings $650,000
Total Stockholders' equity $4,010,000
On August 1, 2007, the board of directors of Benton declared a 15% stock dividend on common stock, to be distributed on September 15th. The market price of Benton's common stock was $35 on August 1, 2007, and $38 on September 15, 2007. What is the amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend?
a. $800,000.
b. $840,000.
c. $912,000.
d. $600,000.