Omega Sports Has the Following Equity Accounts on Its Balance

Omega Sports has the following equity accounts on its balance sheet: $\begin{array}{lr}\text { Common stock ( } \$ .50 \text { par, } 900,000 \text { shares) } & \$ 450,000 \\\text { Paid in excess } & 5,580,000 \\\text { Retained earnings } & 21,204,000 \\\text { T otal common stockholders' equity } & \$ 27,234,000\end{array}$ The current market price of the firm's shares is $20. If the firm declares a 10 percent stock dividend followed by a cash dividend of $0.10 per share, the retained earnings account would change to

A) $21,060,000
B) $19,305,000
C) $25,335,000
D) $19,404,000