The Shareholders' Equity of Tirana Ltd On August 1, 2020, the Board of Directors Declared a Is

The shareholders' equity of Tirana Ltd. at July 31, 2020 is presented below: Common shares, no par value, authorized 400,000 shares,

$\begin{array}{ll}\ \quad\quad \text{issued and outstanding 200,000 shares } & \quad\quad\quad \text{\$ 4,160,000 \quad \quad\quad\quad \quad } \\ \text{ Retained earnings......................................................................} & \quad \quad \quad \text{\ \(\underline{\text{ 2,650,000 }}\) \quad \quad \quad } \\\text{ Total shar eholders' equity ..................................................................... } & \quad \quad \quad \text{\$ 6,810,000 \quad \quad \quad } \\ \ \end{array}$

On August 1, 2020, the board of directors declared a 10% stock dividend, to be distributed on September 15. The market price of Tirana's common shares was $ 35 on August 1 and $ 38 on September 15. What is the debit to retained earnings as a result of the declaration and distribution of this stock dividend?

A) $ 400,000
B) $ 700,000
C) $ 760,000
D) $ 1,400,000