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 500,000 shares of $6.00 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 $22 per share.What is the number of shares outstanding after the stock dividend is issued?

A) 57,750 shares
B) 55,000 shares
C) 52,250 shares
D) 525,000 shares