Samuel's Has 7,000 Shares of Stock Outstanding with a Par

Samuel's has 7,000 shares of stock outstanding with a par value of $1.00 per share and a market value of $12 per share. The balance sheet shows $7,000 in the common stock account,$58,000 in the capital in excess of par account and $32,500 in the retained earnings account. The firm just announced a 50% (large) stock dividend. What is the value of the retained earnings account after the dividend?

A) $29,000
B) $30,500
C) $32,500
D) $34,500
E) $36,000