Cat's Has 25,000 Shares of Stock Outstanding with a Par

Cat's has 25,000 shares of stock outstanding with a par value of $1 per share and a market value of $16.79 per share.The balance sheet shows $25,000 in the common stock account,$465,000 in the capital in excess of par value account,and $868,500 in the retained earnings account.The firm just announced a 50 percent (large) stock dividend.What is the value of the retained earnings account after the dividend?

A) $856,000
B) $868,500
C) $658,625
D) $868,375
E) $881,000