Assume a Firm Has Declared a 10% Stock Dividend on Its

Assume a firm has declared a 10% stock dividend on its 1.5 million shares of outstanding $3 par value common stock. If the market value of the stock at the date of the stock dividend is $10 per share and the retained earnings account balance just before the dividend was $2,600,000, what is the retained earnings balance after the dividend?

A) $2,450,000
B) $1,100,000
C) $1,500,000
D) $2,150,000