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Kurt's Market Has 8,000 Shares of Stock Outstanding with a Par

Question 68

Multiple Choice

Kurt's Market has 8,000 shares of stock outstanding with a par value of $1 per share and a market value of $13 per share.The balance sheet shows $8,000 in the common stock account,$26,000 in the capital in excess of par account,and $36,800 in the retained earnings account.The firm just announced a 100 percent stock dividend.What will be the balance in the retained earnings account after this dividend?


A) $28,800
B) $36,800
C) $38,700
D) $40,700
E) $128,700

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