Murphy's,Inc

Murphy's,Inc.has 12,000 shares of stock outstanding with a par value of $1.00 per share.The market value is $8 per share.The balance sheet shows $32,500 in the capital in excess of par account,$10,000 in the common stock account,and $42,700 in the retained earnings account.The firm just announced a 10% (small) stock dividend.What will the balance in the retained earnings account be after the dividend?

A) $32,700
B) $33,100
C) $42,700
D) $49,700
E) $50,700