Masterson Company Has 420,000 Shares of $10 Par Value Common

Multiple Choice

Masterson Company has 420,000 shares of $10 par value common stock outstanding. During the year Masterson declared a 15% stock dividend when the market price of the stock was $36 per share. Three months later Masterson declared a $.60 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by

A) $2,683,800
B) $2,268,000
C) $ 415,800
D) $ 396,000