Gilligan Corporation Was Established on February 15, Year 1

Multiple Choice

Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 400,000 shares of $12 par value common stock. As of December 30, Year 1, Gilligan's stockholders' equity accounts report the following balances: On December 31, Year 1, Gilligan decides to issue a 5% stock dividend. At the time of issue, the market price of the stock was $38 per share.What is the dollar value of the stock dividend issued by Gilligan Corporation?

A) $76,000
B) $4,800,000
C) $24,000
D) $20,000