Murphy's Has Shares of Stock Outstanding with a Par Value

Multiple Choice

Murphy's has shares of stock outstanding with a par value of $1 per share and a market value of $24.60 per share.The balance sheet shows $32,500 in the capital in excess of par account,$12,000 in the common stock account,and $68,700 in the retained earnings account.The firm just announced a stock dividend of 10 percent.What will be the balance in the retained earnings account after the dividend?

A) $39,180
B) $48,300
C) $59,120
D) $67,520
E) $40,380