Samuel's Has 42,000 Shares of Stock Outstanding with a Par

Multiple Choice

Samuel's has 42,000 shares of stock outstanding with a par value of $1 per share and a market price per share of $41.The balance sheet shows $1,358,000 in the capital in excess of par account and $2,212,500 in the retained earnings account.The firm just announced a stock dividend of 50 percent.What is the value of the capital in excess of par account after the dividend?

A) $1,358,000
B) $612,500
C) $518,000
D) $497,000
E) $221,900