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Question
The Percolator Company has the following capital structure:| Common stock ($5 par, 250,000 shares) | $1,250,000 |
| Contributed capital in excess of par | $5,000,000 |
| Retained earnings | $4,000,000 |
The company declares a 10 percent stock dividend. The pre-stock dividend market price of the company's stock is $50. Determine the balance in the retained earnings account after the stock dividend.
a. $4,000,000
b. $1,375,000
c. $2,750,000
d. $1,250,000
Answer
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Related questions
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