At the Beginning of 2015, Hamilton Company Had Retained Earnings

Multiple Choice

At the beginning of 2015, Hamilton Company had retained earnings of $250,000. During the year Hamilton reported net income of $75,000, sold treasury stock at a "gain" of $27,000, declared a cash dividend of $45,000, and declared and issued a small stock dividend of 1,500 shares ($10 par value) when the fair value of the stock was $30 per share. The amount of retained earnings available for dividends at the end of 2015 was:

A) $284,500.
B) $262,000.
C) $257,500.
D) $235,000.